Revego Africa Energy Fund Managers v Aurora Wind Power (RF) (Pty) Ltd (LM203Feb21) [2021] ZACT 42 (25 May 2021)

Revego Africa Energy Fund Managers v Aurora Wind Power (RF) (Pty) Ltd (LM203Feb21) [2021] ZACT 42 (25 May 2021)

The Tribunal found that the proposed merger between Revego Africa Energy Fund Partnership Managers and Aurora Wind Power is unlikely to substantially prevent or lessen competition in any relevant market. There are no horizontal overlaps between the parties, and the acquiring group's minority shareholding in another renewable energy project does not raise information exchange concerns. The merging parties provided a satisfactory undertaking that no employment positions will be duplicated for three years, addressing public interest concerns. The Tribunal concluded that the transaction does not raise any other public interest issues and approved the merger unconditionally.

Citation
[2021] ZACT 42
Parties
Applicant: Revego Africa Energy Fund Partnership Managers (Pty) Ltd, an en commandite partnership acting through Revego General Partner (RF) (Pty) Ltd; Respondent: Aurora Wind Power (RF) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 May 2021
Case Number
LM203Feb21
Procedural Posture
Large Merger Application / Merger Approval
Outcome
Merger unconditionally approved.
Judges
E Daniels, Y Carrim, A Ndoni
Legal Topics
Merger Control, Public Interest, Horizontal Overlap, Employment Undertakings
Competition Law Commercial and Corporate Merger Control Public Interest Horizontal Overlap Employment Undertakings

Case Brief

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Parties

Revego Africa Energy Fund Partnership Managers (Pty) Ltd, an en commandite partnership acting through Revego General Partner (RF) (Pty) Ltd

Applicant

Aurora Wind Power (RF) (Pty) Ltd

Respondent

Procedural Posture

Large Merger Application / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether the minority shareholding of Investec in another renewable energy project creates information exchange concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Revego Africa Energy Fund Partnership Managers and Aurora Wind Power is unlikely to substantially prevent or lessen competition in any relevant market. There are no horizontal overlaps between the parties, and the acquiring group's minority shareholding in another renewable energy project does not raise information exchange concerns. The merging parties provided a satisfactory undertaking that no employment positions will be duplicated for three years, addressing public interest concerns. The Tribunal concluded that the transaction does not raise any other public interest issues and approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Revego Africa Energy Fund Partnership Managers (Pty) Ltd and Aurora Wind Power (RF) (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).