JDG Trading (Pty) Ltd v Blake and Associates Holdings (Pty) Ltd (110/LM/Oct08) [2008] ZACT 101 (27 November 2008)

JDG Trading (Pty) Ltd v Blake and Associates Holdings (Pty) Ltd (110/LM/Oct08) [2008] ZACT 101 (27 November 2008)

The Tribunal found that the transaction involved a vertical relationship, with JDG Trading increasing its shareholding in Blake and Associates Holdings. The debt collection services provided by Blake and Associates to JDG Group represented a minor portion of both firms' turnover. The merging parties would hold only 1.4% of the total call centre seats in South Africa, and there were several other competitors in the market. The Tribunal concluded that the transaction was unlikely to result in foreclosure or substantially lessen competition. No significant public interest concerns were identified. Accordingly, the merger was approved.

Citation
[2008] ZACT 101
Parties
Applicant: JDG Trading (Pty) Ltd; Respondent: Blake and Associates Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 November 2008
Case Number
110/LM/Oct08
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, Y Carrim, N Manoim
Legal Topics
Merger Control, Vertical Relationships, Foreclosure Concerns, Public Interest, Market Share Analysis
Competition Law Merger Control Vertical Relationships Foreclosure Concerns Public Interest Market Share Analysis

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

JDG Trading (Pty) Ltd

Applicant

Blake and Associates Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of shares by JDG Trading in Blake and Associates Holdings will substantially prevent or lessen competition in the call centre and debt collection market.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the transaction involved a vertical relationship, with JDG Trading increasing its shareholding in Blake and Associates Holdings. The debt collection services provided by Blake and Associates to JDG Group represented a minor portion of both firms' turnover. The merging parties would hold only 1.4% of the total call centre seats in South Africa, and there were several other competitors in the market. The Tribunal concluded that the transaction was unlikely to result in foreclosure or substantially lessen competition. No significant public interest concerns were identified. Accordingly, the merger was approved.

Court Disposition

Merger approved without conditions.

Orders

  • The acquisition by JDG Trading (Pty) Ltd of Blake and Associates Holdings (Pty) Ltd is approved.
  • No conditions are attached to the approval.