Imperial Capital LTD v Deep Catch Namibia Holdings (Pty) Ltd (LM060Aug21) [2021] ZACT 61 (26 October 2021)

Imperial Capital LTD v Deep Catch Namibia Holdings (Pty) Ltd (LM060Aug21) [2021] ZACT 61 (26 October 2021)

The Tribunal found that the proposed merger between Imperial Capital Ltd and Deep Catch Namibia Holdings (Pty) Ltd would not result in a substantial prevention or lessening of competition in any relevant market. The vertical overlap between the parties was minor, and neither input nor customer foreclosure was likely, given the limited market shares and the fact that the Target Group outsources its logistics requirements. The merged entity would not have the ability or incentive to foreclose competitors, and the transaction would not negatively affect competition. Furthermore, the merger raised no public interest concerns and would positively impact the spread of ownership among...

Citation
[2021] ZACT 61
Parties
Applicant: Imperial Capital Ltd; Respondent: Deep Catch Namibia Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 October 2021
Case Number
LM060Aug21
Procedural Posture
Merger Application / Final Determination
Outcome
Merger approved unconditionally.
Judges
E Daniels, M Mazwai, AW Wessels
Legal Topics
Merger Clearance, Vertical Merger, Input Foreclosure, Customer Foreclosure, Public Interest, Market Share Analysis
Competition Law Merger Clearance Vertical Merger Input Foreclosure Customer Foreclosure Public Interest Market Share Analysis

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Parties

Imperial Capital Ltd

Applicant

Deep Catch Namibia Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Imperial Capital Ltd and Deep Catch Namibia Holdings (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the proposed merger between Imperial Capital Ltd and Deep Catch Namibia Holdings (Pty) Ltd would not result in a substantial prevention or lessening of competition in any relevant market. The vertical overlap between the parties was minor, and neither input nor customer foreclosure was likely, given the limited market shares and the fact that the Target Group outsources its logistics requirements. The merged entity would not have the ability or incentive to foreclose competitors, and the transaction would not negatively affect competition. Furthermore, the merger raised no public interest concerns and would positively impact the spread of ownership among...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Imperial Capital Ltd and Deep Catch Namibia Holdings (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).