PSG Private Equity (Pty) Ltd v Precrete Holdings (Pty) Ltd (016634) [2013] ZACT 89 (16 August 2013)

PSG Private Equity (Pty) Ltd v Precrete Holdings (Pty) Ltd (016634) [2013] ZACT 89 (16 August 2013)

The Tribunal found that PSG Private Equity's acquisition of additional shares in Precrete Holdings would result in sole control, but that PSG Group had no other interests in the pre-mix concrete industry. There were no horizontal or vertical overlaps, and thus no need to define a relevant market. The transaction would not substantially prevent or lessen competition. The merger parties confirmed that there would be no adverse effect on employment, and the relevant unions and employee representatives were informed. No other public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2013] ZACT 89
Parties
Applicant: PSG Private Equity (Pty) Ltd; Respondent: Precrete Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 August 2013
Case Number
016634
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Andreas Wessels, Anton Roskam, Takalani Madima
Legal Topics
Merger Control, Sole Control Acquisition, Public Interest Assessment
Competition Law Merger Control Sole Control Acquisition Public Interest Assessment

Case Brief

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Parties

PSG Private Equity (Pty) Ltd

Applicant

Precrete Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition by PSG Private Equity of Precrete Holdings is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that PSG Private Equity's acquisition of additional shares in Precrete Holdings would result in sole control, but that PSG Group had no other interests in the pre-mix concrete industry. There were no horizontal or vertical overlaps, and thus no need to define a relevant market. The transaction would not substantially prevent or lessen competition. The merger parties confirmed that there would be no adverse effect on employment, and the relevant unions and employee representatives were informed. No other public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The acquisition by PSG Private Equity (Pty) Ltd of Precrete Holdings (Pty) Ltd is approved without conditions.