Old Mutual Insure Ltd v ONE Financial Services Holdings (Pty) Ltd (LM082Sep21) [2021] ZACT 106 (9 December 2021)

Old Mutual Insure Ltd v ONE Financial Services Holdings (Pty) Ltd (LM082Sep21) [2021] ZACT 106 (9 December 2021)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. Market share accretions were low across all segments, and strong competitors remained. No input or customer foreclosure concerns were identified in cell captive or reinsurance markets. The Commission and employee representatives confirmed that no negative public interest effects, including on employment or HDP ownership, would result. Regulatory authorities raised no objections. Accordingly, the merger was approved unconditionally.

Citation
[2021] ZACT 106
Parties
Applicant: Old Mutual Insure Ltd; Respondent: ONE Financial Services Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 December 2021
Case Number
LM082Sep21
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger unconditionally approved; no competition or public interest concerns identified.
Judges
E Daniels, I Valodia, T Vilakazi
Legal Topics
Large Merger, Cell Captive Arrangement, Market Share Analysis, Public Interest Assessment, Foreclosure, Spread of Ownership
Competition Law Commercial and Corporate Large Merger Cell Captive Arrangement Market Share Analysis Public Interest Assessment Foreclosure Spread of Ownership

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 1 Party arguments 2 Amounts and remedies 20
Sign in to unlock

Parties

Old Mutual Insure Ltd

Applicant

ONE Financial Services Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Old Mutual Insure Ltd and ONE Financial Services Holdings (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including effects on employment and the spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. Market share accretions were low across all segments, and strong competitors remained. No input or customer foreclosure concerns were identified in cell captive or reinsurance markets. The Commission and employee representatives confirmed that no negative public interest effects, including on employment or HDP ownership, would result. Regulatory authorities raised no objections. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger unconditionally approved; no competition or public interest concerns identified.

Orders

  • The merger between Old Mutual Insure Ltd and ONE Financial Services 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).