Flameup Investments (Pty) Ltd v Festigen Investments (LM163Mar20) [2020] ZACT 12 (8 April 2020)

Flameup Investments (Pty) Ltd v Festigen Investments (LM163Mar20) [2020] ZACT 12 (8 April 2020)

The Tribunal found that post-merger, the combined entity would hold an 18% market share with a 12% accretion, but would not gain market power due to the presence of several competitors. The transaction was unlikely to substantially lessen or prevent competition. No job losses or adverse public interest effects were identified, and employee representatives raised no objections. The Tribunal concurred with the Commission's findings and approved the merger unconditionally.

Citation
[2020] ZACT 12
Parties
Applicant: Flameup Investments (Pty) Ltd; Respondent: Festigen Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 April 2020
Case Number
LM163Mar20
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger unconditionally approved.
Judges
Enver Daniels, Halton Cheadle, Fiona Tregenna
Legal Topics
Merger Control, Market Share Assessment, Public Interest, Employment Effects
Competition Law Commercial and Corporate Land and Property Merger Control Market Share Assessment Public Interest Employment Effects

Case Brief

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Parties

Flameup Investments (Pty) Ltd

Applicant

Festigen Investments (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially lessen or prevent competition in the relevant market.
  2. 2 Whether the transaction would have adverse public interest effects, including job losses.

Ratio Decidendi

The Tribunal found that post-merger, the combined entity would hold an 18% market share with a 12% accretion, but would not gain market power due to the presence of several competitors. The transaction was unlikely to substantially lessen or prevent competition. No job losses or adverse public interest effects were identified, and employee representatives raised no objections. The Tribunal concurred with the Commission's findings and approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The proposed merger between Flameup Investments (Pty) Ltd and Festigen Investments (Pty) Ltd in respect of River Crescent Centre is unconditionally approved.