Primetime Trading 6 (Pty) Ltd v Tourism Investment Corporation Limited (66/LM/JUN08) [2008] ZACT 77; [2008] 2 CPLR 275 (CT) (17 September 2008)

Primetime Trading 6 (Pty) Ltd v Tourism Investment Corporation Limited (66/LM/JUN08) [2008] ZACT 77; [2008] 2 CPLR 275 (CT) (17 September 2008)

The Tribunal found that the proposed merger would not result in a substantial lessening or prevention of competition in the relevant markets. The post-merger market share accretion was low, and there were several strong competitors in both the foreign bank notes and travelers' cheques markets. The vertical relationship between Tourvest and Nedbank did not raise input or customer foreclosure concerns, as there was no commercial incentive for exclusive supply and foreign notes could be easily imported. No public interest issues were identified. Accordingly, the merger was approved without conditions.

Citation
[2008] ZACT 77
Parties
Applicant: Primetime Trading 6 (Pty) Ltd; Respondent: Tourism Investment Corporation Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 September 2008
Case Number
66/LM/JUN08
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Market Share Accretion, Input Foreclosure, Public Interest
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationship Market Share Accretion Input Foreclosure Public Interest

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Parties

Primetime Trading 6 (Pty) Ltd

Applicant

Tourism Investment Corporation Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening or prevention of competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns.
  3. 3 Whether the vertical relationship between Tourvest and Nedbank creates input or customer foreclosure risks.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial lessening or prevention of competition in the relevant markets. The post-merger market share accretion was low, and there were several strong competitors in both the foreign bank notes and travelers' cheques markets. The vertical relationship between Tourvest and Nedbank did not raise input or customer foreclosure concerns, as there was no commercial incentive for exclusive supply and foreign notes could be easily imported. No public interest issues were identified. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Primetime Trading 6 (Pty) Ltd and Tourism Investment Corporation Limited is approved without conditions.