K2022451328 South Africa (Pty) Ltd v Preference Capital (Pty) Ltd (LM091Aug22) [2022] ZACT 36 (11 October 2022)

K2022451328 South Africa (Pty) Ltd v Preference Capital (Pty) Ltd (LM091Aug22) [2022] ZACT 36 (11 October 2022)

The Tribunal found that there is no significant horizontal or vertical overlap between the activities of the merging parties. The Old Mutual Group does not operate in the SME lending sub-market, while PrefCap focuses on SMEs and does not fund start-ups or require black ownership. The Commission's investigation confirmed that the parties are not close competitors and that the transaction would not substantially lessen or prevent competition in the relevant market. No third parties raised concerns, and market participants did not identify the merging parties as significant players. Regarding public interest, the transaction will not negatively affect employment and will increase the spread...

Citation
[2022] ZACT 36
Parties
Applicant: K2022451328 South Africa (Pty) Ltd; Respondent: Preference Capital (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 October 2022
Case Number
LM091Aug22
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved unconditionally.
Judges
Shaista Goga, F Tregenna, A Ndoni
Legal Topics
Large Merger Review, Public Interest, Spread of Ownership, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Public Interest Spread of Ownership Employment Effects

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 3
Sign in to unlock

Parties

K2022451328 South Africa (Pty) Ltd

Applicant

Preference Capital (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the market for funding/lending services to businesses.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment and spread of ownership.

Ratio Decidendi

The Tribunal found that there is no significant horizontal or vertical overlap between the activities of the merging parties. The Old Mutual Group does not operate in the SME lending sub-market, while PrefCap focuses on SMEs and does not fund start-ups or require black ownership. The Commission's investigation confirmed that the parties are not close competitors and that the transaction would not substantially lessen or prevent competition in the relevant market. No third parties raised concerns, and market participants did not identify the merging parties as significant players. Regarding public interest, the transaction will not negatively affect employment and will increase the spread...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between K2022451328 South Africa (Pty) Ltd and Preference Capital (Pty) Ltd is approved without conditions.