Siemens Limited and Marqott Holdings (Pty) Ltd (21/LM/Mar06) [2006] ZACT 43; [2006] 1 CPLR 356 (CT) (22 May 2006)

Siemens Limited and Marqott Holdings (Pty) Ltd (21/LM/Mar06) [2006] ZACT 43; [2006] 1 CPLR 356 (CT) (22 May 2006)

The Tribunal found that the proposed merger between Siemens Limited and Marqott Holdings (Pty) Ltd would not result in a substantial lessening or prevention of competition in either the global market for MV switchgear manufacture or the national market for turnkey projects. The merged entity would face significant competition from established global and local players, and the vertical integration would position Siemens on equal footing with its competitors without foreclosing rivals. The Tribunal also considered public interest factors, noting that all Marqott employees would be retained for at least two years and that the merger would likely result in skills development and potential job...

Citation
[2006] ZACT 43
Parties
Applicant: Siemens Limited; Respondent: Marqott Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 May 2006
Case Number
21/LM/Mar06
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, M Holden, U Bhoola
Legal Topics
Vertical Integration, Market Definition, Public Interest, Skills Development, Employment Protection
Competition Law Commercial and Corporate Vertical Integration Market Definition Public Interest Skills Development Employment Protection

Case Brief

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Parties

Siemens Limited

Applicant

Marqott Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger between Siemens Limited and Marqott Holdings (Pty) Ltd will substantially lessen or prevent competition in the relevant markets.
  2. 2 Whether the merger raises any public interest concerns, including employment and skills development.
  3. 3 Whether the vertical integration resulting from the merger is pro-competitive.

Ratio Decidendi

The Tribunal found that the proposed merger between Siemens Limited and Marqott Holdings (Pty) Ltd would not result in a substantial lessening or prevention of competition in either the global market for MV switchgear manufacture or the national market for turnkey projects. The merged entity would face significant competition from established global and local players, and the vertical integration would position Siemens on equal footing with its competitors without foreclosing rivals. The Tribunal also considered public interest factors, noting that all Marqott employees would be retained for at least two years and that the merger would likely result in skills development and potential job...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Siemens Limited and Marqott Holdings (Pty) Ltd is approved without conditions.
  • All employees of Marqott Holdings (Pty) Ltd shall be retained for a period of two years from the date of approval.