FirstRand Ltd v Barnard Jacobs Mellet Holdings Ltd (36/LM/Jul10) [2010] ZACT 66; [2010] 2 CPLR 324 (CT) (15 October 2010)

FirstRand Ltd v Barnard Jacobs Mellet Holdings Ltd (36/LM/Jul10) [2010] ZACT 66; [2010] 2 CPLR 324 (CT) (15 October 2010)

The Tribunal found that the activities of the merging parties overlap in stock broking, short-term insurance broking, asset/investment management, and corporate finance. In all these markets, the merged entity's post-merger national market share would not exceed 15%, and there is significant competition from other financial services firms. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market. Regarding public interest, the Tribunal accepted that no more than 10% of BJM's employees would potentially be retrenched, and these are skilled individuals likely to find alternative employment. The merging parties undertook to make...

Citation
[2010] ZACT 66
Parties
Applicant: FirstRand Ltd; Respondent: Barnard Jacobs Mellet Holdings Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 October 2010
Case Number
36/LM/Jul10
Procedural Posture
Merger Control / Approval of Large Merger
Outcome
The merger is approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Retrenchment, Financial Services Overlap
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Retrenchment Financial Services Overlap

Case Brief

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Parties

FirstRand Ltd

Applicant

Barnard Jacobs Mellet Holdings Ltd

Respondent

Procedural Posture

Merger Control / Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed merger between FirstRand Ltd and Barnard Jacobs Mellet Holdings Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises significant public interest concerns, particularly regarding potential retrenchments.

Ratio Decidendi

The Tribunal found that the activities of the merging parties overlap in stock broking, short-term insurance broking, asset/investment management, and corporate finance. In all these markets, the merged entity's post-merger national market share would not exceed 15%, and there is significant competition from other financial services firms. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market. Regarding public interest, the Tribunal accepted that no more than 10% of BJM's employees would potentially be retrenched, and these are skilled individuals likely to find alternative employment. The merging parties undertook to make...

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed acquisition of Barnard Jacobs Mellet Holdings Ltd by FirstRand Ltd is approved without conditions.
  • No significant public interest concerns arise from the merger.