MICROS South Africa (Pty) Ltd and Miros-Fidelio South Africa (Pty) Ltd & Others (115/LM/NOV07) [2008] ZACT 4 (15 January 2008)

MICROS South Africa (Pty) Ltd and Miros-Fidelio South Africa (Pty) Ltd & Others (115/LM/NOV07) [2008] ZACT 4 (15 January 2008)

The Tribunal found that the merger between Micros South Africa (Pty) Ltd and the target firms would not substantially lessen or prevent competition in any relevant market. There was no evidence of overlap in the activities of the merging parties, as their products and services are tailored to distinct sectors and are not substitutable. The transaction does not result in vertical integration or horizontal concerns. Furthermore, there are no negative effects on employment or significant public interest issues. The rationale for the transaction, which includes the introduction of a Black Economic Empowerment shareholder, was considered a positive public interest factor. Accordingly, the...

Citation
[2008] ZACT 4
Parties
Applicant: Micros South Africa (Pty) Ltd; Respondent: Micros-Fidelio South Africa (Pty) Ltd; Respondent: Computer Lodging Systems (Pty) Limited; Respondent: Micros Specialized Solutions (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 January 2008
Case Number
115/LM/NOV07
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
DH Lewis, Y Carrim, M Mokuena
Legal Topics
Merger Control, Public Interest, Vertical Integration, Horizontal Concerns
Competition Law Commercial and Corporate Merger Control Public Interest Vertical Integration Horizontal Concerns

Case Brief

Summary, issues, holding and outcome

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Parties

Micros South Africa (Pty) Ltd

Applicant

Micros-Fidelio South Africa (Pty) Ltd

Respondent

Computer Lodging Systems (Pty) Limited

Respondent

Micros Specialized Solutions (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially lessen or prevent competition in the relevant markets.
  2. 2 Whether there is any overlap in the activities of the merging parties that could raise competition concerns.
  3. 3 Whether there are any significant public interest or employment effects arising from the transaction.

Ratio Decidendi

The Tribunal found that the merger between Micros South Africa (Pty) Ltd and the target firms would not substantially lessen or prevent competition in any relevant market. There was no evidence of overlap in the activities of the merging parties, as their products and services are tailored to distinct sectors and are not substitutable. The transaction does not result in vertical integration or horizontal concerns. Furthermore, there are no negative effects on employment or significant public interest issues. The rationale for the transaction, which includes the introduction of a Black Economic Empowerment shareholder, was considered a positive public interest factor. Accordingly, the...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Micros South Africa (Pty) Ltd and Micros-Fidelio South Africa (Pty) Ltd, Computer Lodging Systems (Pty) Limited, and Micros Specialized Solutions (Pty) Ltd is approved unconditionally.