Old Mutual Bank Limited and Permanent Division of Nedbank Limited a division of Nedcor Bank Limited (03/LM/Jan02) [2002] ZACT 19 (10 April 2002)

Old Mutual Bank Limited and Permanent Division of Nedbank Limited a division of Nedcor Bank Limited (03/LM/Jan02) [2002] ZACT 19 (10 April 2002)

The Tribunal found that the merger would not result in a substantial lessening or prevention of competition in any relevant market. The combined market shares of the merging parties in the sub-markets for retail deposit taking, mortgage bonds, and asset-backed loans were insignificant, and the increase in concentration levels was minimal. The presence of strong competitors such as ABSA Bank, Standard Bank, and First National Bank further mitigated any potential anti-competitive effects. Regarding public interest, the Tribunal accepted that job losses were not directly attributable to the merger and that the parties had undertaken to minimize retrenchments in consultation with unions. The...

Citation
[2002] ZACT 19
Parties
Applicant: Old Mutual Bank Limited; Respondent: Permanent Division of Nedbank Limited, a division of Nedcor Bank Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 April 2002
Case Number
03/LM/Jan02
Procedural Posture
Large Merger Review / Merger Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, S. Zilwa, D.H. Lewis
Legal Topics
Large Merger, Market Definition, Public Interest, Employment Effects, Market Share Analysis
Competition Law Banking and Finance Large Merger Market Definition Public Interest Employment Effects Market Share Analysis

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 9
Sign in to unlock

Parties

Old Mutual Bank Limited

Applicant

Permanent Division of Nedbank Limited, a division of Nedcor Bank Limited

Respondent

Procedural Posture

Large Merger Review / Merger Approval

Legal Issues

  1. 1 Whether the merger between Old Mutual Bank Limited and the Permanent Division of Nedbank Limited is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether the merger raises any substantial public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that the merger would not result in a substantial lessening or prevention of competition in any relevant market. The combined market shares of the merging parties in the sub-markets for retail deposit taking, mortgage bonds, and asset-backed loans were insignificant, and the increase in concentration levels was minimal. The presence of strong competitors such as ABSA Bank, Standard Bank, and First National Bank further mitigated any potential anti-competitive effects. Regarding public interest, the Tribunal accepted that job losses were not directly attributable to the merger and that the parties had undertaken to minimize retrenchments in consultation with unions. The...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Old Mutual Bank Limited and the Permanent Division of Nedbank Limited, a division of Nedcor Bank Limited, is approved without conditions.