Firstrand Bank Limited v Kulula Air (Pty) Ltd (LM089Oct21) [2021] ZACT 103 (7 December 2021)

Firstrand Bank Limited v Kulula Air (Pty) Ltd (LM089Oct21) [2021] ZACT 103 (7 December 2021)

The Tribunal found that the proposed acquisition of the Slow Lounge business by FirstRand Bank Limited from Kulula Air (Pty) Ltd does not substantially prevent or lessen competition in the market for airport lounge services. The transaction does not raise any significant public interest concerns. The Tribunal concluded that the merger should be approved without conditions.

Citation
[2021] ZACT 103
Parties
Applicant: Firstrand Bank Limited; Respondent: Kulula Air (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 December 2021
Case Number
LM089Oct21
Procedural Posture
Merger Control / Tribunal Decision
Outcome
Merger approved unconditionally.
Legal Topics
Merger Control, Acquisition of Control, Airport Lounges Market
Competition Law Commercial and Corporate Merger Control Acquisition of Control Airport Lounges Market

Case Brief

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Parties

Firstrand Bank Limited

Applicant

Kulula Air (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Decision

Legal Issues

  1. 1 Whether the proposed acquisition of the Slow Lounge business by FirstRand Bank Limited from Kulula Air (Pty) Ltd raises competition concerns in the relevant market.
  2. 2 Whether the merger should be approved with or without conditions.

Ratio Decidendi

The Tribunal found that the proposed acquisition of the Slow Lounge business by FirstRand Bank Limited from Kulula Air (Pty) Ltd does not substantially prevent or lessen competition in the market for airport lounge services. The transaction does not raise any significant public interest concerns. The Tribunal concluded that the merger should be approved without conditions.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between FirstRand Bank Limited and Kulula Air (Pty) Ltd is approved without conditions.