Nedbank Limited and Fasic Africa (Pty) Limited (89/LM/Dec02) [2004] ZACT 3 (20 January 2004)

Nedbank Limited and Fasic Africa (Pty) Limited (89/LM/Dec02) [2004] ZACT 3 (20 January 2004)

The Tribunal found that the substitution of Nedbank Limited for BoE Bank Limited was a technical requirement under the Banks Act and was approved. The merger between Nedbank Limited and Fasic Africa (Pty) Ltd was also approved, as there was no product overlap between the merging parties or their subsidiaries, and thus no impact on competition. The Tribunal considered the public interest concerns raised by intervening parties regarding empowerment and pre-emptive rights but noted that these were resolved through settlement agreements and withdrawal of objections. There was no evidence that the merger would enable Nedbank or its shareholders to exercise control over competitors in related...

Citation
[2004] ZACT 3
Parties
Applicant: Nedbank Limited; Respondent: Fasic Africa (Pty) Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 January 2004
Case Number
89/LM/Dec02
Procedural Posture
Large Merger Application / Merger Approval and Substitution
Outcome
Merger approved unconditionally; substitution of Nedbank Limited for BoE Bank Limited granted.
Judges
N. Manoim, L. Reyburn, T. Orleyn
Legal Topics
Large Merger Review, Public Interest Considerations, Pre Emptive Rights, Empowerment, Banks Act Compliance
Competition Law Commercial and Corporate Large Merger Review Public Interest Considerations Pre Emptive Rights Empowerment Banks Act Compliance

Case Brief

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Parties

Nedbank Limited

Applicant

Fasic Africa (Pty) Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Application / Merger Approval and Substitution

Legal Issues

  1. 1 Whether the substitution of Nedbank Limited for BoE Bank Limited should be approved under the Banks Act.
  2. 2 Whether the merger between Nedbank Limited and Fasic Africa (Pty) Ltd should be approved under the Competition Act.
  3. 3 Whether the merger would result in a substantial lessening of competition in any relevant market.

Ratio Decidendi

The Tribunal found that the substitution of Nedbank Limited for BoE Bank Limited was a technical requirement under the Banks Act and was approved. The merger between Nedbank Limited and Fasic Africa (Pty) Ltd was also approved, as there was no product overlap between the merging parties or their subsidiaries, and thus no impact on competition. The Tribunal considered the public interest concerns raised by intervening parties regarding empowerment and pre-emptive rights but noted that these were resolved through settlement agreements and withdrawal of objections. There was no evidence that the merger would enable Nedbank or its shareholders to exercise control over competitors in related...

Court Disposition

Merger approved unconditionally; substitution of Nedbank Limited for BoE Bank Limited granted.

Orders

  • The substitution of Nedbank Limited for BoE Bank Limited in the merger application is approved.
  • The merger between Nedbank Limited and Fasic Africa (Pty) Ltd is approved unconditionally.