Greenstreet 1 (Pty) Ltd v Solar Capital de Aar 3 (RF) (Pty) Ltd (LM155Nov20) [2021] ZACT 4 (5 March 2021)

Greenstreet 1 (Pty) Ltd v Solar Capital de Aar 3 (RF) (Pty) Ltd (LM155Nov20) [2021] ZACT 4 (5 March 2021)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. The merged entity's market shares at national, district, and local levels are constrained by long-term, non-negotiable contracts with Eskom under the REIPPPP, which fix price and volume for 20 years and prohibit supply to third parties. Any potential concentration at municipal levels is mitigated by these contractual constraints. The Tribunal also considered the possibility of future direct procurement by municipalities but found that current regulations do not permit this. Information exchange arising from common shareholding was not found to dampen competition, as...

Citation
[2021] ZACT 4
Parties
Applicant: Greenstreet 1 (Pty) Ltd; Respondent: Solar Capital de Aar 3 (RF) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 March 2021
Case Number
LM155Nov20
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
M Mazwai, E Daniels, T Vilakazi
Legal Topics
Merger Control, Renewable Energy Market, Market Share Calculation, Public Interest, Information Exchange
Competition Law Commercial and Corporate Merger Control Renewable Energy Market Market Share Calculation Public Interest Information Exchange

Case Brief

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Parties

Greenstreet 1 (Pty) Ltd

Applicant

Solar Capital de Aar 3 (RF) (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises public interest concerns, including employment effects.
  3. 3 Whether information exchange arising from common shareholding could dampen future competition.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. The merged entity's market shares at national, district, and local levels are constrained by long-term, non-negotiable contracts with Eskom under the REIPPPP, which fix price and volume for 20 years and prohibit supply to third parties. Any potential concentration at municipal levels is mitigated by these contractual constraints. The Tribunal also considered the possibility of future direct procurement by municipalities but found that current regulations do not permit this. Information exchange arising from common shareholding was not found to dampen competition, as...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Greenstreet 1 (Pty) Ltd and Solar Capital de Aar 3 (RF) (Pty) Ltd is approved without conditions.