Professional Provident Society Insurance Company Ltd v The PPS Life and Disability Insurance Scheme (115/LM/Dec12) [2013] ZACT 23 (8 April 2013)

Professional Provident Society Insurance Company Ltd v The PPS Life and Disability Insurance Scheme (115/LM/Dec12) [2013] ZACT 23 (8 April 2013)

The Tribunal found that the proposed merger between PPS Insurance and The PPS Life and Disability Insurance Scheme would not substantially lessen or prevent competition in the market for long term insurance policies. The merged entity's market share would remain below 2%, and there are sufficient competitors in the market. Barriers to entry are not prohibitive, as evidenced by recent entrants. The transaction raises no public interest concerns, including job losses. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2013] ZACT 23
Parties
Applicant: Professional Provident Society Insurance Company Limited; Respondent: The PPS Life and Disability Insurance Scheme
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 April 2013
Case Number
115/LM/Dec12
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger unconditionally approved.
Judges
Takalani Madima, Anton Roskam, Andiswa Ndoni
Legal Topics
Merger Control, Market Definition, Barriers to Entry, Public Interest
Competition Law Commercial and Corporate Merger Control Market Definition Barriers to Entry Public Interest

Case Brief

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Parties

Professional Provident Society Insurance Company Limited

Applicant

The PPS Life and Disability Insurance Scheme

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially lessen or prevent competition in the market for long term insurance policies.
  2. 2 Whether the transaction raises any public interest concerns, including job losses.

Ratio Decidendi

The Tribunal found that the proposed merger between PPS Insurance and The PPS Life and Disability Insurance Scheme would not substantially lessen or prevent competition in the market for long term insurance policies. The merged entity's market share would remain below 2%, and there are sufficient competitors in the market. Barriers to entry are not prohibitive, as evidenced by recent entrants. The transaction raises no public interest concerns, including job losses. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Professional Provident Society Insurance Company Limited and The PPS Life and Disability Insurance Scheme is approved without conditions.