Investec Bank Ltd v Omwieco (Pty) Ltd (LM039Jun20) [2020] ZACT 25 (15 July 2020)

Investec Bank Ltd v Omwieco (Pty) Ltd (LM039Jun20) [2020] ZACT 25 (15 July 2020)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the market for the development and sale of residential property. There is no geographic overlap between the parties, and the vertical relationship regarding debt funding already exists. The Commission's concerns about potential non-market related funding terms were not merger-specific, and there are sufficient competitors in the market to prevent foreclosure. No public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2020] ZACT 25
Parties
Applicant: Investec Bank Ltd; Respondent: Omwieco (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 July 2020
Case Number
LM039Jun20
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved unconditionally.
Judges
E Daniels, Y Carrim, AW Wessels
Legal Topics
Merger Control, Property Development Market, Vertical Relationships, Horizontal Overlap
Competition Law Commercial and Corporate Land and Property Merger Control Property Development Market Vertical Relationships Horizontal Overlap

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Parties

Investec Bank Ltd

Applicant

Omwieco (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of Omwieco by Investec Bank will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the market for the development and sale of residential property. There is no geographic overlap between the parties, and the vertical relationship regarding debt funding already exists. The Commission's concerns about potential non-market related funding terms were not merger-specific, and there are sufficient competitors in the market to prevent foreclosure. No public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.