Sanlam Limited and Safrican Insurance Company and Another (03/LM/Jan05) [2005] ZACT 21 (19 April 2005)

Sanlam Limited and Safrican Insurance Company and Another (03/LM/Jan05) [2005] ZACT 21 (19 April 2005)

The Tribunal found that although there was some overlap in the activities of the merging parties in the provision of group and individual life insurance policies, the relevant market for long-term insurance is broad due to supply-side substitution. The Commission identified additional relevant markets, including administration, consultancy, brokerage, and electronic money transfer services. In all these markets, the increment in market shares resulting from the merger would be less than 1%, and the merged entity would continue to face competition from other players with larger market shares. The Tribunal concluded that the merger would not result in a substantial lessening of competition...

Citation
[2005] ZACT 21
Parties
Applicant: Sanlam Limited; Respondent: Safrican Insurance Company; Respondent: Newshelf 503 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 April 2005
Case Number
03/LM/Jan05
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, Y Carrim, L Reyburn
Legal Topics
Large Merger Review, Market Definition, Public Interest, Market Share Increment
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Market Share Increment

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Sanlam Limited

Applicant

Safrican Insurance Company

Respondent

Newshelf 503 (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Does the proposed merger between Sanlam Limited, Safrican Insurance Company, and Newshelf 503 (Pty) Ltd substantially lessen competition in any relevant market?
  2. 2 Are there any significant public interest concerns arising from the merger?

Ratio Decidendi

The Tribunal found that although there was some overlap in the activities of the merging parties in the provision of group and individual life insurance policies, the relevant market for long-term insurance is broad due to supply-side substitution. The Commission identified additional relevant markets, including administration, consultancy, brokerage, and electronic money transfer services. In all these markets, the increment in market shares resulting from the merger would be less than 1%, and the merged entity would continue to face competition from other players with larger market shares. The Tribunal concluded that the merger would not result in a substantial lessening of competition...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Sanlam Limited, Safrican Insurance Company, and Newshelf 503 (Pty) Ltd is approved without conditions.