Iridescent Investments Proprietary Limited v Servest Group Proprietary Limited (LM042Jun15) [2015] ZACT 94 (27 July 2015)

Iridescent Investments Proprietary Limited v Servest Group Proprietary Limited (LM042Jun15) [2015] ZACT 94 (27 July 2015)

The Tribunal found that the proposed transaction involved a vertical overlap between property management services provided by Kagiso Tiso Holdings through Eris and facilities management services provided by Servest Group. The Competition Commission's analysis concluded that the transaction would not result in input or customer foreclosure due to Servest Group's small market share and the presence of alternatives in the market. Eris's market share in the downstream market was negligible. The merging parties confirmed that there would be no adverse impact on employment, and the transaction would enhance black economic empowerment. The Tribunal concurred with the Commission's assessment and...

Citation
[2015] ZACT 94
Parties
Applicant: Iridescent Investments Proprietary Limited; Respondent: Servest Group Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 July 2015
Case Number
LM042Jun15
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andiswa Ndoni
Legal Topics
Merger Control, Vertical Overlap, Input Foreclosure, Customer Foreclosure, Public Interest, Black Economic Empowerment
Competition Law Merger Control Vertical Overlap Input Foreclosure Customer Foreclosure Public Interest Black Economic Empowerment

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Parties

Iridescent Investments Proprietary Limited

Applicant

Servest Group Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Iridescent Investments Proprietary Limited and Servest Group Proprietary Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises concerns regarding input or customer foreclosure.
  3. 3 Whether the transaction raises any public interest concerns, including employment and black economic empowerment.

Ratio Decidendi

The Tribunal found that the proposed transaction involved a vertical overlap between property management services provided by Kagiso Tiso Holdings through Eris and facilities management services provided by Servest Group. The Competition Commission's analysis concluded that the transaction would not result in input or customer foreclosure due to Servest Group's small market share and the presence of alternatives in the market. Eris's market share in the downstream market was negligible. The merging parties confirmed that there would be no adverse impact on employment, and the transaction would enhance black economic empowerment. The Tribunal concurred with the Commission's assessment and...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Iridescent Investments Proprietary Limited and Servest Group Proprietary Limited is approved unconditionally.
  • No conditions are imposed on the approval of the merger.