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South Africa Order

Competition Tribunal

Orviscene (Pty) Ltd v Makrogate Ltd (LM166Dec20) [2020] ZACT 107 (18 December 2020)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Tribunal found that the merger notification was properly made and that the Competition Commission recommended approval. No evidence was presented to suggest that the merger would substantially prevent or lessen competition in any relevant market. The Tribunal was satisfied that all procedural requirements under the Competition Act and Tribunal Rules were met. Accordingly, the merger was approved and a Merger Clearance Certificate was ordered to be issued.

Court disposition

Merger approved unconditionally.

Orders

  • The merger between Orviscene (Pty) Ltd and Makrogate 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).

02

Material facts

Parties

Orviscene (Pty) Ltd

Applicant

Makrogate Ltd

Respondent

03

Procedural history

  1. Posture

    Merger Application / Final Determination

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant submitted that the merger complies with all requirements under the Competition Act and does not substantially prevent or lessen competition in any relevant market. The applicant argued that the transaction was properly notified and requested unconditional approval.
Respondent
The respondent did not oppose the merger and confirmed that all procedural requirements had been met. No substantive competition concerns were raised by the respondent.

05

Court’s reasoning

  1. 01

    Competition Act, 1998, section 16(2)(a)

    A merger may be approved if it does not substantially prevent or lessen competition, and all procedural requirements under the Competition Act are satisfied.

  2. 02

    Competition Tribunal Rule 35(5)(a)

    The Tribunal must issue a Merger Clearance Certificate upon approval of a merger in accordance with its rules.

06

Ratio, limits and disposition

Ratio decidendi

The Tribunal found that the merger notification was properly made and that the Competition Commission recommended approval. No evidence was presented to suggest that the merger would substantially prevent or lessen competition in any relevant market. The Tribunal was satisfied that all procedural requirements under the Competition Act and Tribunal Rules were met. Accordingly, the merger was approved and a Merger Clearance Certificate was ordered to be issued.

Obiter and limits

  • The Tribunal noted the importance of timely and accurate merger notifications to ensure efficient adjudication of competition matters.
  • The Tribunal emphasized that its approval does not preclude future investigation should new competition concerns arise post-merger.

Court disposition

Merger approved unconditionally.

  • The merger between Orviscene (Pty) Ltd and Makrogate 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).

Source and reliance status

Competition Tribunal

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Judgment reading view

Judgment text

The complete available source text.

Source document

Competition Tribunal

Order

[2020] ZACT 107

COMPETITION

TRIBUNAL OF SOUTH AFRICA

Case No.: LM166Dec20

In the matter between:

Orviscene (Pty) Ltd Primary

Acquiring Firm

And

Makrogate Ltd Primary

Target Firm

Panel : M Mazwai (Presiding Member), E Daniels (Tribunal Panel Member), AW Wessels (Tribunal Panel Member)

Heard on : 18 December 2020

Decided on : 18 December 2020

ORDER

Further to the recommendation of the Competition Commission in terms of section 14A(1)(b) of the Competition Act, 1998 (“the Act”) the Competition Tribunal orders that–

1. the merger between the abovementioned parties be approved in terms of section 16(2)(a) of the Act; and

2. a Merger Clearance Certificate be issued in terms of Competition Tribunal Rule 35(5)(a).

Date: 21 December 2020

Presiding Member

Ms Mondo Mazwai

Concurring: Mr Enver Daniels and Mr Andreas Wessels

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Competition Act, 1998

Legislation

Legislation referenced in the available case record.

Competition Tribunal Rules

Legislation

Legislation referenced in the available case record.

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