Saudi Telecom Company v Oger Telecom Ltd (29/LM/Apr08) [2008] ZACT 29 (7 May 2008)

Saudi Telecom Company v Oger Telecom Ltd (29/LM/Apr08) [2008] ZACT 29 (7 May 2008)

The Tribunal found that although both parties are active in the telecommunications sector, Saudi Telecom Company does not operate in South Africa and thus there is no geographic overlap in their activities. Consequently, the merger would not result in a substantial lessening or prevention of competition in the South African market. Furthermore, no significant public interest issues were identified. The transaction was therefore approved unconditionally.

Citation
[2008] ZACT 29
Parties
Applicant: Saudi Telecom Company; Respondent: Oger Telecom Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 May 2008
Case Number
29/LM/Apr08
Procedural Posture
Merger Clearance / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, T Orleyn
Legal Topics
Merger Clearance, Joint Control, Telecommunications Market, Public Interest, Substantial Lessening of Competition
Competition Law Commercial and Corporate Merger Clearance Joint Control Telecommunications Market Public Interest Substantial Lessening of Competition

Case Brief

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Parties

Saudi Telecom Company

Applicant

Oger Telecom Ltd

Respondent

Procedural Posture

Merger Clearance / Merger Approval

Legal Issues

  1. 1 Whether the proposed acquisition of 35% of Oger Telecom Ltd by Saudi Telecom Company would result in a substantial lessening or prevention of competition in South Africa.
  2. 2 Whether there are any significant public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that although both parties are active in the telecommunications sector, Saudi Telecom Company does not operate in South Africa and thus there is no geographic overlap in their activities. Consequently, the merger would not result in a substantial lessening or prevention of competition in the South African market. Furthermore, no significant public interest issues were identified. The transaction was therefore approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Saudi Telecom Company and Oger Telecom Ltd is approved without conditions.