Investec Bank Limited and BCE Foodservice Equipment (Pty) Ltd (88/LM/Sep05) [2005] ZACT 73 (31 October 2005)

Investec Bank Limited and BCE Foodservice Equipment (Pty) Ltd (88/LM/Sep05) [2005] ZACT 73 (31 October 2005)

The Tribunal found that there is no product or service overlap between Investec Bank Limited and BCE Foodservice Equipment (Pty) Ltd, as Investec operates in specialist banking and financial services while BCE is engaged in the distribution of industrial kitchen and catering equipment. The merger involves Investec acquiring certain rights in BCE through a loan and shareholders' agreement, which does not alter the competitive dynamics in any relevant market. The Tribunal concluded that the transaction will not lead to a substantial lessening or prevention of competition, and there are no public interest concerns that would warrant a different outcome. Accordingly, the merger was approved...

Citation
[2005] ZACT 73
Parties
Applicant: Investec Bank Limited; Respondent: BCE Foodservice Equipment (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 October 2005
Case Number
88/LM/Sep05
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
L. Reyburn, M. Mokoena, T. Orleyn
Legal Topics
Merger Clearance, Substantial Lessening of Competition, Public Interest, Shareholders Agreement
Competition Law Merger Clearance Substantial Lessening of Competition Public Interest Shareholders Agreement

Case Brief

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Parties

Investec Bank Limited

Applicant

BCE Foodservice Equipment (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the merger between Investec Bank Limited and BCE Foodservice Equipment (Pty) Ltd will substantially lessen or prevent competition in any market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that there is no product or service overlap between Investec Bank Limited and BCE Foodservice Equipment (Pty) Ltd, as Investec operates in specialist banking and financial services while BCE is engaged in the distribution of industrial kitchen and catering equipment. The merger involves Investec acquiring certain rights in BCE through a loan and shareholders' agreement, which does not alter the competitive dynamics in any relevant market. The Tribunal concluded that the transaction will not lead to a substantial lessening or prevention of competition, and there are no public interest concerns that would warrant a different outcome. Accordingly, the merger was approved...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Investec Bank Limited and BCE Foodservice Equipment (Pty) Ltd is approved without conditions.