Mulilo Renewable Energy and Mulilo Renewable Energy Solar PV Prieska Non-confidential (LM174Mar20) [2020] ZACT 31 (7 July 2020)

Mulilo Renewable Energy and Mulilo Renewable Energy Solar PV Prieska Non-confidential (LM174Mar20) [2020] ZACT 31 (7 July 2020)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. The merged entity's market shares in both private equity and renewable energy supply were not sufficient to raise competition concerns, given the fragmented nature of the markets and the existence of long-term contracts with Eskom. The Tribunal also determined that there were no adverse public interest effects, as employment would not be affected and community shareholdings would remain unchanged. Accordingly, the merger was approved unconditionally.

Citation
[2020] ZACT 31
Parties
Applicant: Mulilo Renewable Energy Proprietary Limited; Applicant: Greenstreet 1 (Pty) Ltd; Respondent: Mulilo Renewable Energy Solar PV Prieska (RF) (Pty) Ltd; Respondent: Mulilo Renewable Energy Solar PV De Aar (Pty) Ltd; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 July 2020
Case Number
LM174Mar20
Procedural Posture
Merger Review / Reasons for Unconditional Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Enver Daniels, Fiona Tregenna, Thando Vilakazi
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Renewable Energy Sector
Competition Law Merger Control Market Share Analysis Public Interest Renewable Energy Sector

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Mulilo Renewable Energy Proprietary Limited

Applicant

Greenstreet 1 (Pty) Ltd

Applicant

Mulilo Renewable Energy Solar PV Prieska (RF) (Pty) Ltd

Respondent

Mulilo Renewable Energy Solar PV De Aar (Pty) Ltd

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Review / Reasons for Unconditional Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment and historically disadvantaged individuals.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. The merged entity's market shares in both private equity and renewable energy supply were not sufficient to raise competition concerns, given the fragmented nature of the markets and the existence of long-term contracts with Eskom. The Tribunal also determined that there were no adverse public interest effects, as employment would not be affected and community shareholdings would remain unchanged. Accordingly, the merger was approved unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Mulilo Renewable Energy Proprietary Limited, Greenstreet 1 (Pty) Ltd, Mulilo Renewable Energy Solar PV Prieska (RF) (Pty) Ltd, and Mulilo Renewable Energy Solar PV De Aar (Pty) Ltd is approved without conditions.