Kilimanjaro Sakhumnotho Consortium (Pty) Ltd v Main Street 87 Proprietary Limited (LM130Sep15) [2015] ZACT 103 (19 November 2015)

Kilimanjaro Sakhumnotho Consortium (Pty) Ltd v Main Street 87 Proprietary Limited (LM130Sep15) [2015] ZACT 103 (19 November 2015)

The Tribunal found that although both merging parties are active in the oil and gas market, there is no geographic overlap as the acquiring firm's interests were only in Libya and Nigeria, which have since been abandoned. The target firm operates in South Africa and neighbouring countries. The Commission's analysis was accepted, concluding that the merger would not substantially prevent or lessen competition in any market. Furthermore, the transaction does not raise any public interest concerns, including employment. The Tribunal therefore approved the merger unconditionally.

Citation
[2015] ZACT 103
Parties
Applicant: Kilimanjaro Sakhumnotho Consortium (Pty) Ltd; Respondent: Main Street 87 Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 November 2015
Case Number
LM130Sep15
Procedural Posture
Large Merger Review / Approval Reasons
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Andiswa Ndoni, Anton Roskam
Legal Topics
Large Merger Review, Public Interest, Horizontal Overlap, Bee Shareholding, Petroleum Industry
Competition Law Commercial and Corporate Large Merger Review Public Interest Horizontal Overlap Bee Shareholding Petroleum Industry

Case Brief

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Parties

Kilimanjaro Sakhumnotho Consortium (Pty) Ltd

Applicant

Main Street 87 Proprietary Limited

Respondent

Procedural Posture

Large Merger Review / Approval Reasons

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.
  3. 3 Whether there is a horizontal or geographic overlap between the merging parties.

Ratio Decidendi

The Tribunal found that although both merging parties are active in the oil and gas market, there is no geographic overlap as the acquiring firm's interests were only in Libya and Nigeria, which have since been abandoned. The target firm operates in South Africa and neighbouring countries. The Commission's analysis was accepted, concluding that the merger would not substantially prevent or lessen competition in any market. Furthermore, the transaction does not raise any public interest concerns, including employment. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Kilimanjaro Sakhumnotho Consortium (Pty) Ltd and Main Street 87 Proprietary Limited is approved without conditions.