Greenstreet 1 (Pty) Ltd v Scatec Solar SA 164 (Pty) Ltd Scatec Solar SA 165 (Pty) Ltd (LM096SEP24) [2024] ZACT 33 (12 November 2024)

Greenstreet 1 (Pty) Ltd v Scatec Solar SA 164 (Pty) Ltd Scatec Solar SA 165 (Pty) Ltd (LM096SEP24) [2024] ZACT 33 (12 November 2024)

The Tribunal found that the proposed transaction is an indivisible large merger, as both target firms are controlled by Scatec ASA and operate in the same line of business. The merger results in Greenstreet increasing its shareholding from non-controlling to controlling in both Scatec 164 and Scatec 165, but without any increase in market share. The Acquiring Group's total market share in the national market for the supply of solar PV energy to Eskom under the REIPPPP remains unchanged. The Tribunal agreed with the Commission that there are no competition concerns, no creeping merger risks, and no adverse public interest effects, including employment. The transaction will result in...

Citation
[2024] ZACT 33
Parties
Applicant: Greenstreet 1 (Pty) Ltd; Respondent: Scatec Solar SA 164 (Pty) Ltd; Respondent: Scatec Solar SA 165 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 November 2024
Case Number
LM096SEP24
Procedural Posture
Large Merger Review / Reasons for Unconditional Approval
Outcome
Merger approved unconditionally.
Judges
T Vilakazi, I Valodia, G Budlender
Legal Topics
Large Merger, Horizontal Overlap, Creeping Merger, Public Interest, Hdp Ownership, Employment Effects
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Creeping Merger Public Interest Hdp Ownership Employment Effects

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Parties

Greenstreet 1 (Pty) Ltd

Applicant

Scatec Solar SA 164 (Pty) Ltd

Respondent

Scatec Solar SA 165 (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Reasons for Unconditional Approval

Legal Issues

  1. 1 Whether the proposed transaction constitutes an indivisible large merger under the Competition Act.
  2. 2 Whether the merger is likely to substantially prevent or lessen competition in any relevant market.
  3. 3 Whether the transaction raises creeping merger concerns under section 12A(2)(k) of the Competition Act.

Ratio Decidendi

The Tribunal found that the proposed transaction is an indivisible large merger, as both target firms are controlled by Scatec ASA and operate in the same line of business. The merger results in Greenstreet increasing its shareholding from non-controlling to controlling in both Scatec 164 and Scatec 165, but without any increase in market share. The Acquiring Group's total market share in the national market for the supply of solar PV energy to Eskom under the REIPPPP remains unchanged. The Tribunal agreed with the Commission that there are no competition concerns, no creeping merger risks, and no adverse public interest effects, including employment. The transaction will result in...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.