Investec Bank Ltd v Ferro Industrial Products (Pty) Ltd (54/LM/Jul11) [2011] ZACT 82 (20 October 2011)

Investec Bank Ltd v Ferro Industrial Products (Pty) Ltd (54/LM/Jul11) [2011] ZACT 82 (20 October 2011)

The Tribunal found that there is no overlap in the activities of Investec and Ferro, and that Investec does not hold interests in the industrial chemical sector in which Ferro operates. The Commission's analysis confirmed that there is no possibility of vertical integration between the parties. The merger does not raise any major competition concerns, nor does it raise any public interest concerns. Accordingly, the merger was approved without conditions.

Citation
[2011] ZACT 82
Parties
Applicant: Investec Bank Limited; Respondent: Ferro Industrial Products (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 October 2011
Case Number
54/LM/Jul11
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Andiswa Ndoni, Medi Mokuena
Legal Topics
Large Merger, Control Acquisition, Public Interest, Vertical Integration, Market Overlap
Competition Law Commercial and Corporate Large Merger Control Acquisition Public Interest Vertical Integration Market Overlap

Case Brief

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Parties

Investec Bank Limited

Applicant

Ferro Industrial Products (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Investec Bank Limited and Ferro Industrial Products (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that there is no overlap in the activities of Investec and Ferro, and that Investec does not hold interests in the industrial chemical sector in which Ferro operates. The Commission's analysis confirmed that there is no possibility of vertical integration between the parties. The merger does not raise any major competition concerns, nor does it raise any public interest concerns. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Investec Bank Limited and Ferro Industrial Products (Pty) Ltd is approved without conditions.