Nedbank Limited v Emling Properties Proprietary Limited (LM163Dec22) [2023] ZACT 10 (30 March 2023)

Nedbank Limited v Emling Properties Proprietary Limited (LM163Dec22) [2023] ZACT 10 (30 March 2023)

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition in any relevant market, as the combined market shares of the merging parties were low and there were sufficient competitors in the affected geographic areas. The Tribunal also determined that there would be no negative impact on employment, as Emling Properties would remain independent and not be integrated into Nedbank, thus avoiding duplications and retrenchments. Furthermore, the transaction would result in an increase in black economic empowerment shareholding in Emling Properties, addressing public interest considerations. No other public interest concerns were...

Citation
[2023] ZACT 10
Parties
Applicant: Nedbank Limited, Acting Through its Nedbank Corporate And Investment Banking Division, Nedbank Property Partners; Respondent: Emling Properties Proprietary Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 March 2023
Case Number
LM163Dec22
Procedural Posture
Large Merger Review / Merger Approval
Outcome
Merger approved unconditionally.
Judges
A Wessels, T Vilakazi, A Ndoni
Legal Topics
Large Merger Notification, Market Share Analysis, Public Interest, Black Economic Empowerment, Employment Effects
Competition Law Commercial and Corporate Large Merger Notification Market Share Analysis Public Interest Black Economic Empowerment Employment Effects

Case Brief

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Parties

Nedbank Limited, Acting Through its Nedbank Corporate And Investment Banking Division, Nedbank Property Partners

Applicant

Emling Properties Proprietary Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment and black economic empowerment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition in any relevant market, as the combined market shares of the merging parties were low and there were sufficient competitors in the affected geographic areas. The Tribunal also determined that there would be no negative impact on employment, as Emling Properties would remain independent and not be integrated into Nedbank, thus avoiding duplications and retrenchments. Furthermore, the transaction would result in an increase in black economic empowerment shareholding in Emling Properties, addressing public interest considerations. No other public interest concerns were...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Nedbank Limited and Emling Properties Proprietary Limited is approved without conditions.