Prepaid Company (Pty) Ltd v GloCell Distribution (LM210Mar21) [2021] ZACT 35 (21 April 2021)

Prepaid Company (Pty) Ltd v GloCell Distribution (LM210Mar21) [2021] ZACT 35 (21 April 2021)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant market for the wholesale supply of prepaid airtime, data, and cellular starter packs. The merged entity's market share would increase by less than 2%, and it would continue to face competition from other wholesalers and mobile network operators. The transaction would not result in any negative employment effects or other public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2021] ZACT 35
Parties
Applicant: The Prepaid Company (Pty) Ltd; Respondent: GloCell Distribution (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 April 2021
Case Number
LM210Mar21
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger unconditionally approved.
Judges
Andreas Wessels, Yasmin Carrim, Fiona Tregenna
Legal Topics
Large Merger Review, Market Share Analysis, Public Interest Assessment, Sole Control Acquisition
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Public Interest Assessment Sole Control Acquisition

Case Brief

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Parties

The Prepaid Company (Pty) Ltd

Applicant

GloCell Distribution (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the national market for the wholesale supply of prepaid airtime, data, and cellular starter packs.
  2. 2 Whether the merger raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant market for the wholesale supply of prepaid airtime, data, and cellular starter packs. The merged entity's market share would increase by less than 2%, and it would continue to face competition from other wholesalers and mobile network operators. The transaction would not result in any negative employment effects or other public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between The Prepaid Company (Pty) Ltd and GloCell Distribution (Pty) Ltd is approved without conditions.