Kagiso Media Ltd v Urban Brews Studios (Pty) Ltd (105/LM/Oct08) [2008] ZACT 94 (24 November 2008)

Kagiso Media Ltd v Urban Brews Studios (Pty) Ltd (105/LM/Oct08) [2008] ZACT 94 (24 November 2008)

The Tribunal found that the activities of the merging parties overlapped in the production of jingles, audio products, audio broadcasting services, and audiovisual content. However, the overlap in jingles was limited to in-house use and did not affect the contestable market. The combined post-merger market shares for audio products and audiovisual content were low (2% and 4.59% respectively), and the parties faced significant competition from other firms. The geographic overlap in broadcasting services was negligible, as UBS's infrastructure was based in South Sudan. The transaction did not raise any public interest concerns. Accordingly, the Tribunal concluded that the merger was...

Citation
[2008] ZACT 94
Parties
Applicant: Kagiso Media Ltd; Respondent: Urban Brew Studios (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 November 2008
Case Number
105/LM/Oct08
Procedural Posture
Merger Clearance / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Clearance, Market Share Analysis, Public Interest, Media and Broadcasting Services
Competition Law Commercial and Corporate Merger Clearance Market Share Analysis Public Interest Media and Broadcasting Services

Case Brief

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Parties

Kagiso Media Ltd

Applicant

Urban Brew Studios (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Kagiso Media Ltd and Urban Brew Studios (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns warranting conditional approval.

Ratio Decidendi

The Tribunal found that the activities of the merging parties overlapped in the production of jingles, audio products, audio broadcasting services, and audiovisual content. However, the overlap in jingles was limited to in-house use and did not affect the contestable market. The combined post-merger market shares for audio products and audiovisual content were low (2% and 4.59% respectively), and the parties faced significant competition from other firms. The geographic overlap in broadcasting services was negligible, as UBS's infrastructure was based in South Sudan. The transaction did not raise any public interest concerns. Accordingly, the Tribunal concluded that the merger was...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Kagiso Media Ltd and Urban Brew Studios (Pty) Ltd is approved without conditions.