Levoca 549 (Pty) Ltd and Another v Kelvin Holdings (Pty) Ltd (LM079Jul15) [2015] ZACT 114 (22 September 2015)

Levoca 549 (Pty) Ltd and Another v Kelvin Holdings (Pty) Ltd (LM079Jul15) [2015] ZACT 114 (22 September 2015)

The Tribunal found that the proposed transaction does not result in any horizontal overlap in the market for power generation, as the acquiring firms are financial institutions with no direct involvement in the sector. The only change effected by the merger is in ownership, with management remaining outsourced to Aldwych, which already manages the target firm. City Power, the primary customer, expressed no concerns regarding the transaction. The Tribunal concurred with the Commission's assessment that the merger will not substantially prevent or lessen competition in the identified market. Furthermore, there are no negative public interest impacts, including on employment. Accordingly,...

Citation
[2015] ZACT 114
Parties
Applicant: Levoca 549 (Pty) Ltd; Applicant: Government Employees Pension Fund; Respondent: Kelvin Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 September 2015
Case Number
LM079Jul15
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Medi Mokuena, Andreas Wessels
Legal Topics
Large Merger Review, Market Definition, Public Interest, Ownership Change
Competition Law Large Merger Review Market Definition Public Interest Ownership Change

Case Brief

Summary, issues, holding and outcome

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Parties

Levoca 549 (Pty) Ltd

Applicant

Government Employees Pension Fund

Applicant

Kelvin Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the market for power generation.
  2. 2 Whether the transaction raises any public interest concerns, including employment impact.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal overlap in the market for power generation, as the acquiring firms are financial institutions with no direct involvement in the sector. The only change effected by the merger is in ownership, with management remaining outsourced to Aldwych, which already manages the target firm. City Power, the primary customer, expressed no concerns regarding the transaction. The Tribunal concurred with the Commission's assessment that the merger will not substantially prevent or lessen competition in the identified market. Furthermore, there are no negative public interest impacts, including on employment. Accordingly,...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Levoca 549 (Pty) Ltd, Government Employees Pension Fund, and Kelvin Holdings (Pty) Ltd is approved without conditions.