M & G FA Limited v Prudential Portfolio Managers (South Africa) (Pty) Ltd (LM006Apr21) [2021] ZACT 40 (25 May 2021)

M & G FA Limited v Prudential Portfolio Managers (South Africa) (Pty) Ltd (LM006Apr21) [2021] ZACT 40 (25 May 2021)

The Tribunal found that the proposed transaction, involving M&G FA Limited increasing its shareholding in PPMSA from 49.99% to 50.12%, would not result in any substantial prevention or lessening of competition. The merged entity's market share would remain below 3%, with no market share accretion, and it would continue to be constrained by larger competitors. No public interest concerns were identified, and no third parties raised objections. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2021] ZACT 40
Parties
Applicant: M&G FA Limited; Respondent: Prudential Portfolio Managers (South Africa) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 May 2021
Case Number
LM006Apr21
Procedural Posture
Merger Application / Final Determination
Outcome
Merger unconditionally approved.
Judges
E Daniels, Y Carrim, A Ndoni
Legal Topics
Large Merger, Market Share Analysis, Public Interest, Control Acquisition
Competition Law Large Merger Market Share Analysis Public Interest Control Acquisition

Case Brief

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Parties

M&G FA Limited

Applicant

Prudential Portfolio Managers (South Africa) (Pty) Ltd

Respondent

Procedural Posture

Merger Application / 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 any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction, involving M&G FA Limited increasing its shareholding in PPMSA from 49.99% to 50.12%, would not result in any substantial prevention or lessening of competition. The merged entity's market share would remain below 3%, with no market share accretion, and it would continue to be constrained by larger competitors. No public interest concerns were identified, and no third parties raised objections. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between M&G FA Limited and Prudential Portfolio Managers (South Africa) (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).