Okavango Biology Luxembourg SARL v Sonnedix Solar South Africa Holdings (Pty) Ltd ( (LM181Feb22) [2022] ZACT 5; [2022] 1 CPLR 12 (CT) (11 April 2022)

Okavango Biology Luxembourg SARL v Sonnedix Solar South Africa Holdings (Pty) Ltd ( (LM181Feb22) [2022] ZACT 5; [2022] 1 CPLR 12 (CT) (11 April 2022)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the national market for the supply of renewable energy using PV solar energy. The merged entity's market share would remain small, and the market is fragmented with many competitors. The structure of the market would not be affected due to existing long-term Power Purchase Agreements with Eskom, which set prices and volumes in advance. The Tribunal also found that the transaction would not negatively impact employment, as no retrenchments or job losses were anticipated, and employee representatives raised no concerns. The B-BBEE shareholding within the project company would remain...

Citation
[2022] ZACT 5
Parties
Applicant: Okavango Biology Luxembourg SARL; Respondent: Sonnedix Solar South Africa Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 April 2022
Case Number
LM181Feb22
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, T Vilakazi, S Goga
Legal Topics
Merger Control, Renewable Energy Market, Public Interest Assessment, Employment Effects, B Bbee Shareholding
Competition Law Commercial and Corporate Merger Control Renewable Energy Market Public Interest Assessment Employment Effects B Bbee Shareholding

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 3 Authorities cited 2 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Okavango Biology Luxembourg SARL

Applicant

Sonnedix Solar South Africa Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Okavango Biology Luxembourg SARL and Sonnedix Solar South Africa Holdings (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the proposed transaction raises any public interest concerns, including effects on employment and B-BBEE shareholding.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the national market for the supply of renewable energy using PV solar energy. The merged entity's market share would remain small, and the market is fragmented with many competitors. The structure of the market would not be affected due to existing long-term Power Purchase Agreements with Eskom, which set prices and volumes in advance. The Tribunal also found that the transaction would not negatively impact employment, as no retrenchments or job losses were anticipated, and employee representatives raised no concerns. The B-BBEE shareholding within the project company would remain...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Okavango Biology Luxembourg SARL and Sonnedix Solar South Africa Holdings (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal rule 35(5)(a).