Industrial Electronics Investments Ltd and Others v Dartcom (Pty) Ltd and Another (017798) [2013] ZACT 116 (19 December 2013)

Industrial Electronics Investments Ltd and Others v Dartcom (Pty) Ltd and Another (017798) [2013] ZACT 116 (19 December 2013)

The Tribunal found that the proposed transaction is essentially a group restructuring, with Remgro being the only entity acquiring control over a business not previously controlled. There are no overlaps in the relevant markets, and no firm within the Remgro group provides products or services substitutable with those offered by the CIVH Group. The transaction does not raise any competition concerns or adverse public interest effects, including on employment. Accordingly, the merger was approved unconditionally.

Citation
[2013] ZACT 116
Parties
Applicant: Industrial Electronics Investments Limited; Applicant: New Gx TMT and Energy (Pty) Ltd; Applicant: Community Investment Ventures Holdings (Proprietary) Limited; Respondent: Dartcom (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 December 2013
Case Number
017798
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Takalani Madima, Mondo Mazwai, Medi Mokuena
Legal Topics
Merger Control, Group Restructuring, Public Interest Assessment
Competition Law Commercial and Corporate Merger Control Group Restructuring Public Interest Assessment

Case Brief

Summary, issues, holding and outcome

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Parties

Industrial Electronics Investments Limited

Applicant

New Gx TMT and Energy (Pty) Ltd

Applicant

Community Investment Ventures Holdings (Proprietary) Limited

Applicant

Dartcom (Proprietary) Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger results in any substantial lessening or prevention of competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction is essentially a group restructuring, with Remgro being the only entity acquiring control over a business not previously controlled. There are no overlaps in the relevant markets, and no firm within the Remgro group provides products or services substitutable with those offered by the CIVH Group. The transaction does not raise any competition concerns or adverse public interest effects, including on employment. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Industrial Electronics Investments Limited, New Gx TMT and Energy (Pty) Ltd, Community Investment Ventures Holdings (Proprietary) Limited, and Dartcom (Proprietary) Limited is approved unconditionally.