Lebashe Investment Group (Pty) Ltd v Tiso Blackstar Group (Pty) Ltd and Another (LM070Jul19) [2019] ZACT 79 (4 November 2019)

Lebashe Investment Group (Pty) Ltd v Tiso Blackstar Group (Pty) Ltd and Another (LM070Jul19) [2019] ZACT 79 (4 November 2019)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market, as Lebashe does not have investments in firms competing with the target firms. The retrenchments cited by the unions were not merger-specific but resulted from ongoing financial difficulties and structural changes in the media industry. The Commission's investigation confirmed that the job losses were contemplated prior to merger negotiations and were consistent with industry trends. No job duplications would arise from the merger, and the transaction raised no public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2019] ZACT 79
Parties
Applicant: Lebashe Investment Group (Pty) Ltd; Respondent: Tiso Blackstar Group (Pty) Ltd; Respondent: Rise Broadcast (Pty) Ltd; Respondent: Vuma 103 FM (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 November 2019
Case Number
LM070Jul19
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Mondo Mazwai, Enver Daniels, Andiswa Ndoni
Legal Topics
Merger Notification, Public Interest Assessment, Retrenchment Analysis, Media Sector Merger
Competition Law Commercial and Corporate Merger Notification Public Interest Assessment Retrenchment Analysis Media Sector Merger

Case Brief

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Parties

Lebashe Investment Group (Pty) Ltd

Applicant

Tiso Blackstar Group (Pty) Ltd

Respondent

Rise Broadcast (Pty) Ltd

Respondent

Vuma 103 FM (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises public interest concerns, specifically regarding retrenchments.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market, as Lebashe does not have investments in firms competing with the target firms. The retrenchments cited by the unions were not merger-specific but resulted from ongoing financial difficulties and structural changes in the media industry. The Commission's investigation confirmed that the job losses were contemplated prior to merger negotiations and were consistent with industry trends. No job duplications would arise from the merger, and the transaction raised no public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Lebashe Investment Group (Pty) Ltd and Tiso Blackstar Group (Pty) Ltd, Rise Broadcast (Pty) Ltd and Vuma 103 FM (Pty) Ltd is approved without conditions.