Macquarie Africa (Pty) Ltd v Macquarie First South (Pty) Ltd (LM141Sep15) [2015] ZACT 105 (27 November 2015)

Macquarie Africa (Pty) Ltd v Macquarie First South (Pty) Ltd (LM141Sep15) [2015] ZACT 105 (27 November 2015)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any market, as the acquiring firm was already a 50% shareholder and the transaction would not alter market structure or result in market share accretion. The vertical relationship between the parties was not likely to result in foreclosure concerns due to the low market share of MFSC and the presence of other competitors. Public interest concerns were limited to three employees, and the merging parties undertook to consider redeployment before retrenchment. No other significant public interest concerns were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2015] ZACT 105
Parties
Applicant: Macquarie Africa (Pty) Ltd; Respondent: Macquarie First South (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 November 2015
Case Number
LM141Sep15
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationship Public Interest Market Share Analysis

Case Brief

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Parties

Macquarie Africa (Pty) Ltd

Applicant

Macquarie First South (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in any market.
  2. 2 Whether the transaction raises significant public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any market, as the acquiring firm was already a 50% shareholder and the transaction would not alter market structure or result in market share accretion. The vertical relationship between the parties was not likely to result in foreclosure concerns due to the low market share of MFSC and the presence of other competitors. Public interest concerns were limited to three employees, and the merging parties undertook to consider redeployment before retrenchment. No other significant public interest concerns were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Macquarie Africa (Pty) Ltd and Macquarie First South (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the approval of the transaction.