Standard Bank of South Africa Limited and Global Resorts South Africa (Pty) Ltd (18/LM/Mar04) [2004] ZACT 33 (6 May 2004)

Standard Bank of South Africa Limited and Global Resorts South Africa (Pty) Ltd (18/LM/Mar04) [2004] ZACT 33 (6 May 2004)

The Tribunal found that the consortium would collectively control GRSA post-merger, but none of the members would individually hold more than 50% of the voting rights. The asset management companies, RMBAM and Allan Gray, ceded their voting rights to other consortium members, and none of the acquiring parties have interests in the hotel and gaming industry. There is no product market overlap, and the vertical relationship between GTT and GRSA is insignificant, constituting less than 1% of GTT's business. The transaction will not affect employment or empowerment structures, and no public interest concerns arise. Therefore, the merger is unlikely to substantially lessen competition and is...

Citation
[2004] ZACT 33
Parties
Applicant: Standard Bank of South Africa Limited; Respondent: Global Resorts South Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 May 2004
Case Number
18/LM/Mar04
Procedural Posture
Large Merger Approval / Decision on Merger Approval
Outcome
Merger unconditionally approved.
Judges
N Manoim, U Bhoola, T Orleyn
Legal Topics
Large Merger, Control of Firm, Vertical Relationships, Public Interest, Market Definition
Competition Law Commercial and Corporate Large Merger Control of Firm Vertical Relationships Public Interest Market Definition

Case Brief

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Parties

Standard Bank of South Africa Limited

Applicant

Global Resorts South Africa (Pty) Ltd

Respondent

Procedural Posture

Large Merger Approval / Decision on Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening of competition in the hotel and gaming industry.
  2. 2 Whether any public interest concerns arise from the transaction.
  3. 3 Whether the vertical relationship between Grant Thornton Tourism, Hospitality and Leisure Consulting (Pty) Ltd and Global Resorts South Africa (Pty) Ltd raises competition concerns.

Ratio Decidendi

The Tribunal found that the consortium would collectively control GRSA post-merger, but none of the members would individually hold more than 50% of the voting rights. The asset management companies, RMBAM and Allan Gray, ceded their voting rights to other consortium members, and none of the acquiring parties have interests in the hotel and gaming industry. There is no product market overlap, and the vertical relationship between GTT and GRSA is insignificant, constituting less than 1% of GTT's business. The transaction will not affect employment or empowerment structures, and no public interest concerns arise. Therefore, the merger is unlikely to substantially lessen competition and is...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between the consortium, including Standard Bank of South Africa Limited, and Global Resorts South Africa (Pty) Limited is unconditionally approved.