Greenstreet 1 (Pty) Ltd v Scatec Solar South Africa B.V (LM184Feb23) [2023] ZACT 19 (13 April 2023)

Greenstreet 1 (Pty) Ltd v Scatec Solar South Africa B.V (LM184Feb23) [2023] ZACT 19 (13 April 2023)

The Tribunal found that the proposed merger between Greenstreet and Scatec SSA would not substantially prevent or lessen competition in any relevant market. The market for the supply of solar PV under the REIPPPP is structured such that Eskom is the sole customer, with prices and quantities agreed upfront for each project. The merging parties' combined market share post-merger would be 11.1%, with approximately 70 solar PV projects in the REIPPPP, indicating no significant risk of unilateral effects. Information exchange and coordination concerns were found to be unlikely due to the ringfenced nature of each project and the inability of IPPs to participate in multiple bid windows. Public...

Citation
[2023] ZACT 19
Parties
Applicant: Greenstreet 1 (Pty) Ltd; Respondent: Scatec Solar South Africa B.V
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 April 2023
Case Number
LM184Feb23
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
S Goga, I Valodia, A Ndoni
Legal Topics
Large Merger Review, Horizontal Overlap, Public Interest, Hdp Ownership, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Horizontal Overlap Public Interest Hdp Ownership Employment Effects

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Greenstreet 1 (Pty) Ltd

Applicant

Scatec Solar South Africa B.V

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment and HDP ownership.

Ratio Decidendi

The Tribunal found that the proposed merger between Greenstreet and Scatec SSA would not substantially prevent or lessen competition in any relevant market. The market for the supply of solar PV under the REIPPPP is structured such that Eskom is the sole customer, with prices and quantities agreed upfront for each project. The merging parties' combined market share post-merger would be 11.1%, with approximately 70 solar PV projects in the REIPPPP, indicating no significant risk of unilateral effects. Information exchange and coordination concerns were found to be unlikely due to the ringfenced nature of each project and the inability of IPPs to participate in multiple bid windows. Public...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Greenstreet 1 (Pty) Ltd and Scatec Solar South Africa B.V is approved without conditions.