Investec Bank Ltd and Main Street 57 (Pty) Ltd / Corobrik (Pty) Ltd / Corovest (Pty) Ltd (15/LM/Mar05) [2005] ZACT 32 (24 May 2005)

Investec Bank Ltd and Main Street 57 (Pty) Ltd / Corobrik (Pty) Ltd / Corovest (Pty) Ltd (15/LM/Mar05) [2005] ZACT 32 (24 May 2005)

The Tribunal found that there is no horizontal overlap in the activities of the merging parties, as Investec operates in financial services and the target firms are involved in brick manufacturing and investment holding. The transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merger would not result in any job losses or adverse public interest effects. Accordingly, the merger was approved unconditionally.

Citation
[2005] ZACT 32
Parties
Applicant: Investec Bank Ltd; Respondent: Main Street 57 (Pty) Ltd; Respondent: Corobrik (Pty) Ltd; Respondent: Corovest (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 May 2005
Case Number
15/LM/Mar05
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, D Lewis, N Manoim
Legal Topics
Large Merger Review, Horizontal Overlap, Public Interest, Shareholding Structure
Competition Law Large Merger Review Horizontal Overlap Public Interest Shareholding Structure

Case Brief

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Parties

Investec Bank Ltd

Applicant

Main Street 57 (Pty) Ltd

Respondent

Corobrik (Pty) Ltd

Respondent

Corovest (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger would have any adverse public interest effects, including job losses.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap in the activities of the merging parties, as Investec operates in financial services and the target firms are involved in brick manufacturing and investment holding. The transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merger would not result in any job losses or adverse public interest effects. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Investec Bank Ltd and Main Street 57 (Pty) Ltd, Corobrik (Pty) Ltd and Corovest (Pty) Ltd is approved without conditions.