Metropolitan Holdings Ltd and HTG Life Ltd (58/LM/Jun07) [2007] ZACT 58 (5 September 2007)

Metropolitan Holdings Ltd and HTG Life Ltd (58/LM/Jun07) [2007] ZACT 58 (5 September 2007)

The Tribunal found that the combined market shares of the merging parties in the relevant markets for assistance and life policies were low (5% and 6% respectively). The market is characterised by numerous strong competitors, including Old Mutual, Sanlam Life Assurance, Liberty Active, Alan Gray, Standard General, RMB Structured Life, AVBOB, and Capital Alliance. The Tribunal agreed with the Commission that the merger would not result in customer foreclosure or substantially prevent or lessen competition. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2007] ZACT 58
Parties
Applicant: Metropolitan Holdings Ltd; Respondent: HTG Life Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 September 2007
Case Number
58/LM/Jun07
Procedural Posture
Merger Clearance / Merger Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, L Reyburn, M Mokuena
Legal Topics
Merger Clearance, Market Definition, Horizontal Effects, Vertical Effects, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Clearance Market Definition Horizontal Effects Vertical Effects Public Interest Market Share Analysis

Case Brief

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Parties

Metropolitan Holdings Ltd

Applicant

HTG Life Ltd

Respondent

Procedural Posture

Merger Clearance / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Metropolitan Holdings Ltd and HTG Life Ltd will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that the combined market shares of the merging parties in the relevant markets for assistance and life policies were low (5% and 6% respectively). The market is characterised by numerous strong competitors, including Old Mutual, Sanlam Life Assurance, Liberty Active, Alan Gray, Standard General, RMB Structured Life, AVBOB, and Capital Alliance. The Tribunal agreed with the Commission that the merger would not result in customer foreclosure or substantially prevent or lessen competition. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Metropolitan Holdings Ltd and HTG Life Ltd is approved without conditions.