Guardrisk Life Limited v Long Term Credit Life Insurance Policies (LM193Jan17) [2017] ZACT 44; [2017] 1 CPLR 297 (CT) (9 May 2017)

Guardrisk Life Limited v Long Term Credit Life Insurance Policies (LM193Jan17) [2017] ZACT 44; [2017] 1 CPLR 297 (CT) (9 May 2017)

The Tribunal found that the proposed merger between Guardrisk and the target credit life insurance policies would not substantially prevent or lessen competition in either the individual or corporate group long-term credit life insurance markets in South Africa. The merged entity's market share, while notable, would not confer market power due to the presence of strong competitors and the statutory right of customers to select their insurer. The transaction did not raise any public interest concerns. The Tribunal therefore approved the merger without conditions.

Citation
[2017] ZACT 44
Parties
Applicant: Guardrisk Life Limited; Respondent: The Long Term Credit Life Insurance Policies Currently Underwritten by the Standard General Insurance Company Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 May 2017
Case Number
LM193Jan17
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved without conditions.
Judges
Y Carrim, M Mokuena, A Ndoni
Legal Topics
Merger Control, Credit Life Insurance, Market Share Analysis, Public Interest, Statutory Assignment
Competition Law Commercial and Corporate Merger Control Credit Life Insurance Market Share Analysis Public Interest Statutory Assignment

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Parties

Guardrisk Life Limited

Applicant

The Long Term Credit Life Insurance Policies Currently Underwritten by the Standard General Insurance Company Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the merger raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Guardrisk and the target credit life insurance policies would not substantially prevent or lessen competition in either the individual or corporate group long-term credit life insurance markets in South Africa. The merged entity's market share, while notable, would not confer market power due to the presence of strong competitors and the statutory right of customers to select their insurer. The transaction did not raise any public interest concerns. The Tribunal therefore approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Guardrisk Life Limited and the target credit life insurance policies is approved without conditions.