Investment Solutions Holdings Limited v Caveo Fund Solutions Proprietary Limited (LM056JUL16) [2016] ZACT 82 (6 September 2016)

Investment Solutions Holdings Limited v Caveo Fund Solutions Proprietary Limited (LM056JUL16) [2016] ZACT 82 (6 September 2016)

The Tribunal found that the proposed transaction results in both a horizontal and vertical overlap in the asset management services market. The merged entity would have a combined post-merger market share of 5.1%, competing with several reputable players. The Commission found no concerns regarding input or customer foreclosure, and competitors did not object. The transaction was unlikely to substantially prevent or lessen competition, and no negative public interest effects, including on employment, were identified. The Tribunal concurred with the Commission's findings and approved the merger unconditionally.

Citation
[2016] ZACT 82
Parties
Applicant: Investment Solutions Holdings Limited; Respondent: Caveo Fund Solutions Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 September 2016
Case Number
LM056JUL16
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Norman Manoim, Andreas Wessels, Fiona Tregenna
Legal Topics
Merger Control, Asset Management Services, Horizontal Overlap, Vertical Overlap, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Asset Management Services Horizontal Overlap Vertical Overlap Public Interest Market Share Analysis

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Parties

Investment Solutions Holdings Limited

Applicant

Caveo Fund Solutions Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Investment Solutions Holdings Limited and Caveo Fund Solutions Proprietary Limited is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction results in both a horizontal and vertical overlap in the asset management services market. The merged entity would have a combined post-merger market share of 5.1%, competing with several reputable players. The Commission found no concerns regarding input or customer foreclosure, and competitors did not object. The transaction was unlikely to substantially prevent or lessen competition, and no negative public interest effects, including on employment, were identified. The Tribunal concurred with the Commission's findings and approved the merger unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between Investment Solutions Holdings Limited and Caveo Fund Solutions Proprietary Limited is approved unconditionally.