Royal Bafokeng MB Technologies (Pty) Ltd and MB Technologies (Pty) Ltd (97/LM/Nov06) [2007] ZACT 7 (10 January 2007)

Royal Bafokeng MB Technologies (Pty) Ltd and MB Technologies (Pty) Ltd (97/LM/Nov06) [2007] ZACT 7 (10 January 2007)

The Tribunal found that the proposed merger would not substantially lessen or prevent competition in the relevant IT market, as RBHSH's involvement in the sector is limited to its existing minority shareholding in MB Technologies. The transaction would result in MB Technologies having a black economic empowerment partner holding the majority of shares, which aligns with public interest objectives. The Tribunal also noted that there would be no job losses as a result of the transaction. Accordingly, the merger was approved unconditionally.

Citation
[2007] ZACT 7
Parties
Applicant: Royal Bafokeng MB Technologies (Pty) Ltd; Respondent: MB Technologies (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 January 2007
Case Number
97/LM/Nov06
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, M Mokuena
Legal Topics
Merger Control, Black Economic Empowerment, Market Structure, Joint Control
Competition Law Commercial and Corporate Merger Control Black Economic Empowerment Market Structure Joint Control

Case Brief

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Parties

Royal Bafokeng MB Technologies (Pty) Ltd

Applicant

MB Technologies (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially lessen or prevent competition in the relevant IT market.
  2. 2 Whether the transaction would result in job losses or negatively impact employment.
  3. 3 Whether the transaction advances black economic empowerment objectives.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially lessen or prevent competition in the relevant IT market, as RBHSH's involvement in the sector is limited to its existing minority shareholding in MB Technologies. The transaction would result in MB Technologies having a black economic empowerment partner holding the majority of shares, which aligns with public interest objectives. The Tribunal also noted that there would be no job losses as a result of the transaction. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Royal Bafokeng MB Technologies (Pty) Ltd and MB Technologies (Pty) Ltd is approved without conditions.