Siemens Business Services (Pty) Ltd and Unihold Business Solutions (division of Unihold Group Ltd) (43/LM/Jul01) [2001] ZACT 38 (3 October 2001)

Siemens Business Services (Pty) Ltd and Unihold Business Solutions (division of Unihold Group Ltd) (43/LM/Jul01) [2001] ZACT 38 (3 October 2001)

The Tribunal found that both Siemens Business Services and Unihold Business Solutions Division have market shares of less than 1% in the South African IT services market, which is dominated by larger competitors. The overlap in services is limited, and the merger is unlikely to negatively affect competition. The transaction may enhance competition by creating a more effective competitor. Regarding public interest, the only significant impact identified was potential retrenchment of up to 40 staff members due to restructuring in finance, administration, and logistics. No other public interest concerns were found. The merger was approved without conditions.

Citation
[2001] ZACT 38
Parties
Applicant: Siemens Business Services (Pty) Ltd; Respondent: Unihold Business Solutions Division of Unihold Group Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 October 2001
Case Number
43/LM/Jul01
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
D.H. Lewis, P. Maponya, F. Fourie
Legal Topics
Large Merger Review, Market Definition, Public Interest Considerations, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Considerations Employment Effects

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Parties

Siemens Business Services (Pty) Ltd

Applicant

Unihold Business Solutions Division of Unihold Group Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division of Unihold Group Ltd will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the merger raises any significant public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that both Siemens Business Services and Unihold Business Solutions Division have market shares of less than 1% in the South African IT services market, which is dominated by larger competitors. The overlap in services is limited, and the merger is unlikely to negatively affect competition. The transaction may enhance competition by creating a more effective competitor. Regarding public interest, the only significant impact identified was potential retrenchment of up to 40 staff members due to restructuring in finance, administration, and logistics. No other public interest concerns were found. The merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division of Unihold Group Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.