Sanlam life Insurance Ltd v Coris Capital Holdings (Pty) Ltd (04/LM/FEB10) [2010] ZACT 18 (10 March 2010)

Sanlam life Insurance Ltd v Coris Capital Holdings (Pty) Ltd (04/LM/FEB10) [2010] ZACT 18 (10 March 2010)

The Tribunal found that although there is a significant horizontal overlap between the activities of Sanlam and Coris Holdings, both parties hold relatively small market shares in all sectors where their businesses overlap. The financial services industry is highly fragmented, and there are sufficient alternative providers. The merger will not result in increased market power or foreclosure concerns. No public interest issues arise from the transaction. Therefore, the merger is unlikely to substantially prevent or lessen competition in any relevant market and is approved.

Citation
[2010] ZACT 18
Parties
Applicant: Sanlam Life Insurance Limited; Respondent: Coris Capital Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 March 2010
Case Number
04/LM/FEB10
Procedural Posture
Merger Review / Approval
Outcome
Merger approved without conditions.
Judges
Y Carrim, N Manoim, A Wessels
Legal Topics
Merger Control, Market Share Analysis, Horizontal Overlap
Competition Law Commercial and Corporate Merger Control Market Share Analysis Horizontal Overlap

Case Brief

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Parties

Sanlam Life Insurance Limited

Applicant

Coris Capital Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition by Sanlam Life Insurance Limited of Coris Capital Holdings (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that although there is a significant horizontal overlap between the activities of Sanlam and Coris Holdings, both parties hold relatively small market shares in all sectors where their businesses overlap. The financial services industry is highly fragmented, and there are sufficient alternative providers. The merger will not result in increased market power or foreclosure concerns. No public interest issues arise from the transaction. Therefore, the merger is unlikely to substantially prevent or lessen competition in any relevant market and is approved.

Court Disposition

Merger approved without conditions.

Orders

  • The acquisition by Sanlam Life Insurance Limited of Coris Capital Holdings (Pty) Ltd is approved.
  • No conditions are attached to the approval.