Old Mutual Insure Limited v Genric Insurance Company Limited (LM127Oct22) [2022] ZACT 56 (30 November 2022)

Old Mutual Insure Limited v Genric Insurance Company Limited (LM127Oct22) [2022] ZACT 56 (30 November 2022)

The Tribunal found that the proposed merger between Old Mutual Insure Limited and Genric Insurance Company Limited would not substantially prevent or lessen competition in any relevant market. The Commission's analysis showed that the combined post-merger market share of the parties would remain below concerning thresholds in both broad and narrow non-life insurance markets. The largest competitor, Santam, would still hold a significantly higher market share, and there are approximately 90 active insurance companies in the market. Vertical foreclosure concerns were dismissed, as reinsurance providers would continue to have access to alternative primary insurers. No employment losses would...

Citation
[2022] ZACT 56
Parties
Applicant: Old Mutual Insure Limited; Respondent: Genric Insurance Company Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 November 2022
Case Number
LM127Oct22
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, F Tregenna, A Ndoni
Legal Topics
Merger Control, Public Interest, B Bbbee Compliance, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Public Interest B Bbbee Compliance Market Share Analysis

Case Brief

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Parties

Old Mutual Insure Limited

Applicant

Genric Insurance Company Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Old Mutual Insure Limited and Genric Insurance Company Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment and the spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger between Old Mutual Insure Limited and Genric Insurance Company Limited would not substantially prevent or lessen competition in any relevant market. The Commission's analysis showed that the combined post-merger market share of the parties would remain below concerning thresholds in both broad and narrow non-life insurance markets. The largest competitor, Santam, would still hold a significantly higher market share, and there are approximately 90 active insurance companies in the market. Vertical foreclosure concerns were dismissed, as reinsurance providers would continue to have access to alternative primary insurers. No employment losses would...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Old Mutual Insure Limited and Genric Insurance Company Limited is approved without conditions.
  • No employment losses shall arise in South Africa as a result of the transaction.