Mainstreet 872 (Pty) Ltd v Tracker Investment Holdings (Pty) Ltd (40/LM/May11) [2011] ZACT 72 (12 September 2011)

Mainstreet 872 (Pty) Ltd v Tracker Investment Holdings (Pty) Ltd (40/LM/May11) [2011] ZACT 72 (12 September 2011)

The Tribunal found that the proposed transaction is essentially an internal restructuring and does not significantly alter the market structure or increase Tracker's market share. The concerns raised by competitors regarding foreclosure and exclusive agreements were not merger-specific and lacked evidentiary support. The Commission's investigation confirmed that Actis does not control Alexander Forbes and that Alexander Forbes lacks market power to engage in foreclosure. The SAPS contract with Tracker existed prior to the merger and is unaffected by the transaction. No significant public interest concerns or adverse employment effects were identified. Accordingly, the Tribunal concluded...

Citation
[2011] ZACT 72
Parties
Applicant: Mainstreet 872 (Pty) Ltd; Respondent: Tracker Investment Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 September 2011
Case Number
40/LM/May11
Procedural Posture
Large Merger / Approval
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Foreclosure Concerns, Barriers to Entry, Public Interest, Market Structure
Competition Law Commercial and Corporate Merger Control Foreclosure Concerns Barriers to Entry Public Interest Market Structure

Case Brief

Summary, issues, holding and outcome

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Parties

Mainstreet 872 (Pty) Ltd

Applicant

Tracker Investment Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger between Mainstreet 872 (Pty) Ltd and Tracker Investment Holdings (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any significant public interest concerns, including adverse effects on employment.
  3. 3 Whether the concerns raised by competitors regarding foreclosure and exclusive agreements are merger-specific and justified.

Ratio Decidendi

The Tribunal found that the proposed transaction is essentially an internal restructuring and does not significantly alter the market structure or increase Tracker's market share. The concerns raised by competitors regarding foreclosure and exclusive agreements were not merger-specific and lacked evidentiary support. The Commission's investigation confirmed that Actis does not control Alexander Forbes and that Alexander Forbes lacks market power to engage in foreclosure. The SAPS contract with Tracker existed prior to the merger and is unaffected by the transaction. No significant public interest concerns or adverse employment effects were identified. Accordingly, the Tribunal concluded...

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Mainstreet 872 (Pty) Ltd and Tracker Investment Holdings (Pty) Ltd is approved without conditions.