Investec Bank Ltd v Clidet No. 808 (Pty) Ltd (35/LM/Apr08) [2008] ZACT 69 (4 September 2008)

Investec Bank Ltd v Clidet No. 808 (Pty) Ltd (35/LM/Apr08) [2008] ZACT 69 (4 September 2008)

The Tribunal found that there is no overlap between the activities of Investec Bank Ltd and Clidet No. 808 (Pty) Ltd, as Investec is not active in the sectors in which Clidet holds investments. The transaction involves Investec acquiring a 30% shareholding with minority protection rights, which does not amount to control over Clidet. The Tribunal further determined that the transaction does not give rise to any public interest concerns, such as employment, BEE, or impact on particular industries. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 69
Parties
Applicant: Investec Bank Ltd; Respondent: Clidet No. 808 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 September 2008
Case Number
35/LM/Apr08
Procedural Posture
Merger Clearance / Decision on Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, D Lewis, N Manoim
Legal Topics
Merger Notification, Public Interest Assessment, Minority Protection Rights
Commercial and Corporate Competition Law Merger Notification Public Interest Assessment Minority Protection Rights

Case Brief

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Parties

Investec Bank Ltd

Applicant

Clidet No. 808 (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Decision on Merger Approval

Legal Issues

  1. 1 Whether the proposed acquisition by Investec Bank Ltd of a 30% shareholding in Clidet No. 808 (Pty) Ltd raises competition concerns under the Competition Act.
  2. 2 Whether the transaction gives rise to any public interest issues warranting conditions.

Ratio Decidendi

The Tribunal found that there is no overlap between the activities of Investec Bank Ltd and Clidet No. 808 (Pty) Ltd, as Investec is not active in the sectors in which Clidet holds investments. The transaction involves Investec acquiring a 30% shareholding with minority protection rights, which does not amount to control over Clidet. The Tribunal further determined that the transaction does not give rise to any public interest concerns, such as employment, BEE, or impact on particular industries. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Investec Bank Ltd and Clidet No. 808 (Pty) Ltd is approved without conditions.