main Street 1603 (Pty) Ltd v Tessara (Pty) Ltd (LM062May18) [2018] ZACT 26 (30 July 2018)

main Street 1603 (Pty) Ltd v Tessara (Pty) Ltd (LM062May18) [2018] ZACT 26 (30 July 2018)

The Tribunal found that the proposed transaction does not result in a horizontal overlap between the merging parties' activities, as The Carlyle Group is not active in the relevant market. The Commission's investigation confirmed that the merger is unlikely to substantially prevent or lessen competition. The Tribunal also considered employment-related public interest concerns and was satisfied with the explanations provided by the merging parties and the Commission that no adverse employment effects would result from the transaction. Accordingly, the Tribunal approved the merger unconditionally, finding no competition or public interest grounds to prohibit or condition the transaction.

Citation
[2018] ZACT 26
Parties
Applicant: Main Street 1603 (Pty) Ltd; Respondent: Tessara (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 July 2018
Case Number
LM062May18
Procedural Posture
Merger Control / Approval Hearing
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Enver Daniels, Fiona Tregenna
Legal Topics
Merger Control, Public Interest, Employment Effects, Horizontal Overlap
Competition Law Merger Control Public Interest Employment Effects Horizontal Overlap

Case Brief

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Parties

Main Street 1603 (Pty) Ltd

Applicant

Tessara (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval Hearing

Legal Issues

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

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in a horizontal overlap between the merging parties' activities, as The Carlyle Group is not active in the relevant market. The Commission's investigation confirmed that the merger is unlikely to substantially prevent or lessen competition. The Tribunal also considered employment-related public interest concerns and was satisfied with the explanations provided by the merging parties and the Commission that no adverse employment effects would result from the transaction. Accordingly, the Tribunal approved the merger unconditionally, finding no competition or public interest grounds to prohibit or condition the transaction.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.