OMPE GP IV (Pty) Ltd and Another v Medhold Group (Pty) Ltd (LM023Apr18) [2018] ZACT 25 (7 June 2018)

OMPE GP IV (Pty) Ltd and Another v Medhold Group (Pty) Ltd (LM023Apr18) [2018] ZACT 25 (7 June 2018)

The Tribunal found that there is no horizontal overlap or vertical relationship between the activities of the merging parties and the target firm. The Competition Commission's investigation confirmed that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that there would be no negative effects on employment and no other public interest concerns arise. Accordingly, the Tribunal approved the proposed transaction unconditionally.

Citation
[2018] ZACT 25
Parties
Applicant: OMPE GP IV (Pty) Ltd; Applicant: The B Shareholders; Respondent: Medhold Group (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 June 2018
Case Number
LM023Apr18
Procedural Posture
Merger Review / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Andreas Wessels, Andiswa Ndoni, Fiona Tregenna
Legal Topics
Merger Control, Public Interest, Joint Control, Horizontal Overlap, Vertical Relationships
Competition Law Merger Control Public Interest Joint Control Horizontal Overlap Vertical Relationships

Case Brief

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Parties

OMPE GP IV (Pty) Ltd

Applicant

The B Shareholders

Applicant

Medhold Group (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger between OMPE GP IV (Pty) Ltd, The B Shareholders, and Medhold Group (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap or vertical relationship between the activities of the merging parties and the target firm. The Competition Commission's investigation confirmed that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that there would be no negative effects on employment and no other public interest concerns arise. Accordingly, the Tribunal approved the proposed transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between OMPE GP IV (Pty) Ltd, The B Shareholders, and Medhold Group (Pty) Ltd is approved unconditionally.