IAM NewCo v Investec Asset Management Holdings (Pty) Ltd and Investec Asset Management Ltd (LM236Jan19) [2019] ZACT 15 (11 March 2019)

IAM NewCo v Investec Asset Management Holdings (Pty) Ltd and Investec Asset Management Ltd (LM236Jan19) [2019] ZACT 15 (11 March 2019)

The Tribunal found that the proposed transaction does not result in any horizontal or vertical overlaps, as the acquiring firm, NewCo, is a newly established entity with no prior activities. The transaction does not raise any competition concerns in any relevant market. Furthermore, there are no adverse public interest issues, including employment, as NewCo has no employees and the employees of the target firms raised no objections. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and does not negatively impact public interest. Therefore, the transaction was unconditionally approved.

Citation
[2019] ZACT 15
Parties
Applicant: IAM NewCo; Respondent: Investec Asset Management Holdings (Pty) Ltd; Respondent: Investec Asset Management Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 March 2019
Case Number
LM236Jan19
Procedural Posture
Merger Control / Approval
Outcome
The merger was unconditionally approved.
Judges
Y Carrim, M Mazwai, A Ndoni
Legal Topics
Merger Control, Public Interest, Market Definition
Competition Law Commercial and Corporate Merger Control Public Interest Market Definition

Case Brief

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Parties

IAM NewCo

Applicant

Investec Asset Management Holdings (Pty) Ltd

Respondent

Investec Asset Management Ltd

Respondent

Procedural Posture

Merger Control / 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 any adverse public interest concerns, including employment.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal or vertical overlaps, as the acquiring firm, NewCo, is a newly established entity with no prior activities. The transaction does not raise any competition concerns in any relevant market. Furthermore, there are no adverse public interest issues, including employment, as NewCo has no employees and the employees of the target firms raised no objections. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and does not negatively impact public interest. Therefore, the transaction was unconditionally approved.

Court Disposition

The merger was unconditionally approved.

Orders

  • The transaction is approved without conditions.