Investec Group Ltd and Frame Group Ltd (86/LM/Aug00) [2000] ZACT 41 (28 September 2000)

Investec Group Ltd and Frame Group Ltd (86/LM/Aug00) [2000] ZACT 41 (28 September 2000)

The Tribunal found that there is no significant product overlap between Investec Group Ltd and Frame Group Ltd, except for a negligible overlap in asset management. The Sable family's interest in Gregory Knitting Mills is minor compared to Frame's market position. The transaction is a sale of shares and does not affect employment or other public interest issues. Accordingly, the merger does not substantially lessen or prevent competition in any relevant market and raises no public interest concerns under section 16 of the Competition Act. The merger was therefore approved without conditions.

Citation
[2000] ZACT 41
Parties
Applicant: Investec Group Ltd; Respondent: Frame Group Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 September 2000
Case Number
86/LM/Aug00
Procedural Posture
Large Merger / Merger Clearance Decision
Outcome
Merger approved without conditions.
Judges
D.H. Lewis, N.M. Manoim, P.E. Maponya
Legal Topics
Large Merger Review, Public Interest Considerations, Product Market Definition, Section 16 Competition Act
Competition Law Commercial and Corporate Large Merger Review Public Interest Considerations Product Market Definition Section 16 Competition Act

Case Brief

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Parties

Investec Group Ltd

Applicant

Frame Group Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance Decision

Legal Issues

  1. 1 Whether the merger between Investec Group Ltd and Frame Group Ltd substantially lessens or prevents competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns under section 16 of the Competition Act.

Ratio Decidendi

The Tribunal found that there is no significant product overlap between Investec Group Ltd and Frame Group Ltd, except for a negligible overlap in asset management. The Sable family's interest in Gregory Knitting Mills is minor compared to Frame's market position. The transaction is a sale of shares and does not affect employment or other public interest issues. Accordingly, the merger does not substantially lessen or prevent competition in any relevant market and raises no public interest concerns under section 16 of the Competition Act. The merger was therefore approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Investec Group Ltd and Frame Group Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.