PSG Konsult Ltd v Tlotlisa Securities (Pty) Ltd (28/LM/Feb09) [2009] ZACT 38 (3 June 2009)

PSG Konsult Ltd v Tlotlisa Securities (Pty) Ltd (28/LM/Feb09) [2009] ZACT 38 (3 June 2009)

The Tribunal found that the combined market share of the merging parties post-transaction would be 3.5% in a highly fragmented stockbroking market with over 50 competitors, and that the merging firms do not feature among the top 10 trading service providers. The Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition. Regarding public interest, the Tribunal noted that although 22 of 64 employees at Tlotlisa Securities would be retrenched, this number is significantly lower than the 60 retrenchments that would have occurred absent the transaction. The Tribunal agreed with the Commission that the transaction does not raise substantial...

Citation
[2009] ZACT 38
Parties
Applicant: PSG Konsult Ltd; Respondent: Tlotlisa Securities (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 June 2009
Case Number
28/LM/Feb09
Procedural Posture
Merger Control / Tribunal Approval and Reasons
Outcome
Merger approved; transaction unlikely to substantially prevent or lessen competition and does not raise substantial public interest concerns.
Judges
D Lewis, Y Carrim, N Manoim
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Retrenchment, Stockbroking Services
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Retrenchment Stockbroking Services

Case Brief

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Parties

PSG Konsult Ltd

Applicant

Tlotlisa Securities (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the stockbroking market.
  2. 2 Whether the transaction raises substantial public interest concerns, particularly regarding retrenchments.

Ratio Decidendi

The Tribunal found that the combined market share of the merging parties post-transaction would be 3.5% in a highly fragmented stockbroking market with over 50 competitors, and that the merging firms do not feature among the top 10 trading service providers. The Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition. Regarding public interest, the Tribunal noted that although 22 of 64 employees at Tlotlisa Securities would be retrenched, this number is significantly lower than the 60 retrenchments that would have occurred absent the transaction. The Tribunal agreed with the Commission that the transaction does not raise substantial...

Court Disposition

Merger approved; transaction unlikely to substantially prevent or lessen competition and does not raise substantial public interest concerns.

Orders

  • The acquisition by PSG Konsult Ltd of the entire issued share capital in Tlotlisa Securities (Pty) Ltd is approved.
  • No conditions are imposed on the approval of the merger.