Sasfin Bank Ltd v Absa Technology Finance Solutions (Pty) Ltd (LM1970ct17) [2018] ZACT 3 (22 January 2018)

Sasfin Bank Ltd v Absa Technology Finance Solutions (Pty) Ltd (LM1970ct17) [2018] ZACT 3 (22 January 2018)

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in the relevant market, as the merged entity's market share would remain below 25% and sufficient competition would persist from other market participants. Furthermore, the merging parties provided an undertaking that no job losses or retrenchments would occur as a result of the transaction, extending beyond the initial one-year period. The Tribunal concluded that the transaction raised no public interest concerns and approved the merger unconditionally.

Citation
[2018] ZACT 3
Parties
Applicant: Sasfin Bank Ltd; Respondent: Absa Technology Finance Solutions (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 January 2018
Case Number
LM1970ct17
Procedural Posture
Merger Control / Approval of Proposed Transaction
Outcome
The proposed transaction is approved unconditionally.
Judges
AW Wessels, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Employment Effects
Competition Law Banking and Finance Merger Control Market Share Analysis Public Interest Employment Effects

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

Sasfin Bank Ltd

Applicant

Absa Technology Finance Solutions (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval of Proposed Transaction

Legal Issues

  1. 1 Whether the proposed merger between Sasfin Bank Ltd and Absa Technology Finance Solutions (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed transaction raises any public interest concerns, specifically regarding employment.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in the relevant market, as the merged entity's market share would remain below 25% and sufficient competition would persist from other market participants. Furthermore, the merging parties provided an undertaking that no job losses or retrenchments would occur as a result of the transaction, extending beyond the initial one-year period. The Tribunal concluded that the transaction raised no public interest concerns and approved the merger unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Sasfin Bank Ltd and Absa Technology Finance Solutions (Pty) Ltd is approved without conditions.
  • No job losses or retrenchments shall occur as a result of the proposed transaction.