K2014158670 Proprietary Limited v Dorper Wind Farm (RF) Proprietary Limited (020222) [2015] ZACT 35 (15 April 2015)

K2014158670 Proprietary Limited v Dorper Wind Farm (RF) Proprietary Limited (020222) [2015] ZACT 35 (15 April 2015)

The Tribunal found that the proposed merger does not result in any horizontal or vertical overlaps in the relevant market, as TriAlpha SPV does not hold shares in any firms producing renewable energy in South Africa. The only other notified transaction by TriAlpha SPV involves Intikon Energy, which uses a different technology (Solar PV) compared to Dorper Wind Farm's onshore wind technology. The procurement process under the REIPP ensures that competition occurs at the bidding stage and is technology-specific. With approximately 60 IPPs contracted to Eskom until 2030, the merged entity will not have market power. The transaction raises no public interest concerns. Accordingly, the...

Citation
[2015] ZACT 35
Parties
Applicant: K2014158670 Proprietary Limited; Respondent: Dorper Wind Farm (RF) Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 April 2015
Case Number
020222
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
Anton Roskam, Fiona Tregenna, Imraan Valodia
Legal Topics
Merger Control, Renewable Energy Market, Public Interest Assessment
Competition Law Commercial and Corporate Merger Control Renewable Energy Market Public Interest Assessment

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Parties

K2014158670 Proprietary Limited

Applicant

Dorper Wind Farm (RF) Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between TriAlpha SPV and Dorper Wind Farm (RF) Proprietary Limited will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed merger does not result in any horizontal or vertical overlaps in the relevant market, as TriAlpha SPV does not hold shares in any firms producing renewable energy in South Africa. The only other notified transaction by TriAlpha SPV involves Intikon Energy, which uses a different technology (Solar PV) compared to Dorper Wind Farm's onshore wind technology. The procurement process under the REIPP ensures that competition occurs at the bidding stage and is technology-specific. With approximately 60 IPPs contracted to Eskom until 2030, the merged entity will not have market power. The transaction raises no public interest concerns. Accordingly, the...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between TriAlpha SPV and Dorper Wind Farm (RF) Proprietary Limited is approved without conditions.