Fujitsu Siemens Computers (Holding) BV and Siemens Services Newco (Pty) Ltd (26/LM/Mar06) [2006] ZACT 44; [2006] 1 CPLR 135 (CT) (25 May 2006)

Fujitsu Siemens Computers (Holding) BV and Siemens Services Newco (Pty) Ltd (26/LM/Mar06) [2006] ZACT 44; [2006] 1 CPLR 135 (CT) (25 May 2006)

The Tribunal found that the merger would not lead to a substantial lessening or prevention of competition in either the narrow market for IT hardware maintenance services or the broader IT services market. Post-merger, the parties' combined market shares are low (6% in the narrow market and 5% in the broad market), and numerous strong competitors remain. The vertical integration resulting from the transaction does not raise foreclosure concerns due to the small market shares of the parties in both upstream and downstream markets. The Tribunal accepted the Commission's market definitions and analysis. No public interest concerns were identified, as the transaction would not negatively...

Citation
[2006] ZACT 44
Parties
Applicant: Fujitsu Siemens Computers (Holding) BV; Respondent: Siemens Services Newco (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 May 2006
Case Number
26/LM/Mar06
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Merle Holden, Urmila Bhoola
Legal Topics
Large Merger Review, Market Definition, Horizontal Merger Analysis, Vertical Integration, Public Interest, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Market Definition Horizontal Merger Analysis Vertical Integration Public Interest Employment Effects

Case Brief

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Parties

Fujitsu Siemens Computers (Holding) BV

Applicant

Siemens Services Newco (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Does the proposed merger substantially lessen or prevent competition in the relevant markets?
  2. 2 Are there any significant horizontal or vertical competition concerns arising from the merger?
  3. 3 Does the merger raise any public interest concerns, including effects on employment?

Ratio Decidendi

The Tribunal found that the merger would not lead to a substantial lessening or prevention of competition in either the narrow market for IT hardware maintenance services or the broader IT services market. Post-merger, the parties' combined market shares are low (6% in the narrow market and 5% in the broad market), and numerous strong competitors remain. The vertical integration resulting from the transaction does not raise foreclosure concerns due to the small market shares of the parties in both upstream and downstream markets. The Tribunal accepted the Commission's market definitions and analysis. No public interest concerns were identified, as the transaction would not negatively...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Fujitsu Siemens Computers (Holding) BV and Siemens Services Newco (Pty) Ltd is approved.
  • No conditions are attached to the approval.