Pepkor Capital (Pty) Ltd v Flash Mobile Cash (Pty) Ltd and Others (15/LM/Feb12) [2012] ZACT 27 (18 April 2012)

Pepkor Capital (Pty) Ltd v Flash Mobile Cash (Pty) Ltd and Others (15/LM/Feb12) [2012] ZACT 27 (18 April 2012)

The Tribunal found that the proposed merger between Pepkor Capital and the target firms would not result in a substantial prevention or lessening of competition in any relevant market. The merged entity's market share in the supply of handheld and desktop phones to vendors would remain below 10%, and sufficient alternative suppliers existed to mitigate any vertical foreclosure concerns. Furthermore, the transaction would not adversely affect employment or raise any other public interest issues. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2012] ZACT 27
Parties
Applicant: Pepkor Capital (Pty) Ltd; Respondent: Flash Mobile Cash (Pty) Ltd; Respondent: SharedPhone International (Pty) Ltd; Respondent: Take It Eezi Vending (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 April 2012
Case Number
15/LM/Feb12
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, M Mokuena, T Madima
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationships, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationships Public Interest Market Share Analysis

Case Brief

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Parties

Pepkor Capital (Pty) Ltd

Applicant

Flash Mobile Cash (Pty) Ltd

Respondent

SharedPhone International (Pty) Ltd

Respondent

Take It Eezi Vending (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Pepkor Capital and the target firms would not result in a substantial prevention or lessening of competition in any relevant market. The merged entity's market share in the supply of handheld and desktop phones to vendors would remain below 10%, and sufficient alternative suppliers existed to mitigate any vertical foreclosure concerns. Furthermore, the transaction would not adversely affect employment or raise any other public interest issues. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Pepkor Capital (Pty) Ltd and Flash Mobile Cash (Pty) Ltd, SharedPhone International (Pty) Ltd, and Take It Eezi Vending (Pty) Ltd is approved unconditionally.