Old Mutual Alternative Investments v ACTOM Investment Holdings (Pty) Ltd (LM212Mar21) [2021] ZACT 43 (25 May 2021)

Old Mutual Alternative Investments v ACTOM Investment Holdings (Pty) Ltd (LM212Mar21) [2021] ZACT 43 (25 May 2021)

The Tribunal found that there is no horizontal overlap between the activities of Old Mutual Alternative Investments and ACTOM, as they operate in distinct industries. The identified vertical overlaps—trade credit insurance, guarantee insurance, and pension administration services—do not give rise to anticompetitive effects because Old Mutual Group lacks both the ability and incentive to engage in foreclosure strategies in these segments. The Commission's investigation confirmed that the transaction is unlikely to result in a significant prevention or lessening of competition in any market in South Africa. Furthermore, no public interest concerns were identified. Accordingly, the Tribunal...

Citation
[2021] ZACT 43
Parties
Applicant: Old Mutual Alternative Investments (Pty) Ltd; Respondent: ACTOM Investment Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 May 2021
Case Number
LM212Mar21
Procedural Posture
Merger Clearance / Final Determination
Outcome
Merger approved unconditionally.
Judges
E Daniels, Y Carrim, A Ndoni
Legal Topics
Merger Clearance, Vertical Overlap, Foreclosure, Public Interest, Market Definition
Competition Law Merger Clearance Vertical Overlap Foreclosure Public Interest Market Definition

Case Brief

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Parties

Old Mutual Alternative Investments (Pty) Ltd

Applicant

ACTOM Investment Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial prevention or lessening of competition in any market in South Africa.
  2. 2 Whether the merger raises any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap between the activities of Old Mutual Alternative Investments and ACTOM, as they operate in distinct industries. The identified vertical overlaps—trade credit insurance, guarantee insurance, and pension administration services—do not give rise to anticompetitive effects because Old Mutual Group lacks both the ability and incentive to engage in foreclosure strategies in these segments. The Commission's investigation confirmed that the transaction is unlikely to result in a significant prevention or lessening of competition in any market in South Africa. Furthermore, no public interest concerns were identified. Accordingly, the Tribunal...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Old Mutual Alternative Investments (Pty) Ltd and ACTOM Investment 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).