Kagiso Capital (RF) Proprietary Ltd v EMSS Consulting Proprietary Ltd t/a Alphawave Holdings (LM118Sep20) [2020] ZACT 46 (22 December 2020)

Kagiso Capital (RF) Proprietary Ltd v EMSS Consulting Proprietary Ltd t/a Alphawave Holdings (LM118Sep20) [2020] ZACT 46 (22 December 2020)

The Tribunal found that both Kagiso Capital and EMSS have market shares of less than 1% in the private equity investment market, which manages over R190 billion in assets. The minimal market shares and the presence of over 100 private equity firms in South Africa, as well as competition from international firms and trade players, indicate that the transaction will not result in any unilateral effects or a significant lessening of competition. The Tribunal also found that the transaction does not raise any public interest concerns, including employment, as no retrenchments are anticipated and employees were notified without objection. Accordingly, the Tribunal approved the transaction...

Citation
[2020] ZACT 46
Parties
Applicant: Kagiso Capital (RF) Proprietary Limited; Respondent: EMSS Consulting Proprietary Limited t/a Alphawave Holdings
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 December 2020
Case Number
LM118Sep20
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
Y Carrim, E Daniels, A Ndoni
Legal Topics
Merger Control, Private Equity Market, Public Interest, Market Share Analysis
Competition Law Merger Control Private Equity Market Public Interest Market Share Analysis

Case Brief

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Parties

Kagiso Capital (RF) Proprietary Limited

Applicant

EMSS Consulting Proprietary Limited t/a Alphawave Holdings

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed transaction would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that both Kagiso Capital and EMSS have market shares of less than 1% in the private equity investment market, which manages over R190 billion in assets. The minimal market shares and the presence of over 100 private equity firms in South Africa, as well as competition from international firms and trade players, indicate that the transaction will not result in any unilateral effects or a significant lessening of competition. The Tribunal also found that the transaction does not raise any public interest concerns, including employment, as no retrenchments are anticipated and employees were notified without objection. Accordingly, the Tribunal approved the transaction...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Kagiso Capital (RF) Proprietary Limited and EMSS Consulting Proprietary Limited t/a Alphawave Holdings is approved without conditions.