G.D.F International S.A. v Actis Energy Okavango Mauritius Limited (LM036Jun23) [2023] ZACT 80 (5 October 2023)

G.D.F International S.A. v Actis Energy Okavango Mauritius Limited (LM036Jun23) [2023] ZACT 80 (5 October 2023)

The Tribunal found that the merged entity's post-merger market shares and accretions in the relevant markets for renewable energy, solar PV, and onshore wind are relatively low and do not raise significant competition concerns. The structure of the REIPPPP, with Eskom as a single buyer exerting countervailing power and contracts fixing prices and volumes, further mitigates any potential anti-competitive effects. The merger will not result in retrenchments, and HDP shareholding in project companies will remain unchanged. No evidence was presented of negative effects on employment or the spread of ownership. Accordingly, the Tribunal concluded that the merger is unlikely to substantially...

Citation
[2023] ZACT 80
Parties
Applicant: G.D.F International S.A.; Respondent: Actis Energy Okavango Mauritius Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 October 2023
Case Number
LM036Jun23
Procedural Posture
Large Merger / Approval
Outcome
The Tribunal unconditionally approved the large merger between G.D.F International S.A. and Actis Energy Okavango Mauritius Limited.
Judges
Sha'ista Goga, Fiona Tregenna, Andiswa Ndoni
Legal Topics
Large Merger Review, Renewable Energy Market, Public Interest Assessment, Horizontal Overlap, Hdp Ownership, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Renewable Energy Market Public Interest Assessment Horizontal Overlap Hdp Ownership Employment Effects

Case Brief

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Parties

G.D.F International S.A.

Applicant

Actis Energy Okavango Mauritius Limited

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial prevention or lessening of competition in the relevant markets.
  2. 2 Whether the merger will have a negative effect on employment in South Africa.
  3. 3 Whether the merger will negatively affect the spread of ownership, particularly HDP shareholding, in the REIPPPP project companies.

Ratio Decidendi

The Tribunal found that the merged entity's post-merger market shares and accretions in the relevant markets for renewable energy, solar PV, and onshore wind are relatively low and do not raise significant competition concerns. The structure of the REIPPPP, with Eskom as a single buyer exerting countervailing power and contracts fixing prices and volumes, further mitigates any potential anti-competitive effects. The merger will not result in retrenchments, and HDP shareholding in project companies will remain unchanged. No evidence was presented of negative effects on employment or the spread of ownership. Accordingly, the Tribunal concluded that the merger is unlikely to substantially...

Court Disposition

The Tribunal unconditionally approved the large merger between G.D.F International S.A. and Actis Energy Okavango Mauritius Limited.

Orders

  • The proposed transaction is approved unconditionally.
  • No retrenchments will occur in South Africa as a result of the merger.