Sun International (South Africa) Limited and Real Africa Holdings Limited (41/LM/May06) [2006] ZACT 70 (17 August 2006)

Sun International (South Africa) Limited and Real Africa Holdings Limited (41/LM/May06) [2006] ZACT 70 (17 August 2006)

The Tribunal found that the merger merely results in the transfer of minority shareholdings from Real Africa to Sun International in subsidiaries where Sun International already exercises control. Post-merger, Sun International will acquire sole positive control over Afrisun KZN, Emfuleni Resorts, and Sunwest International, but this does not result in any aggregation of market share or increased concentration. The transaction does not raise any public interest concerns, as Real Africa's non-gaming interests will be disposed of after completion. The Tribunal agreed with the Commission that the merger is unlikely to substantially prevent or lessen competition in any market where the parties...

Citation
[2006] ZACT 70
Parties
Applicant: Sun International (South Africa) Limited; Respondent: Real Africa Holdings Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 August 2006
Case Number
41/LM/Apr06
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Sole Control, Minority Shareholdings, Public Interest, Market Concentration
Competition Law Commercial and Corporate Merger Control Sole Control Minority Shareholdings Public Interest Market Concentration

Case Brief

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Parties

Sun International (South Africa) Limited

Applicant

Real Africa Holdings Limited

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Does the proposed merger result in a substantial prevention or lessening of competition in any relevant market?
  2. 2 Will the transaction lead to an aggregation of market share or increased concentration in South Africa?
  3. 3 Are there any public interest concerns arising from the merger?

Ratio Decidendi

The Tribunal found that the merger merely results in the transfer of minority shareholdings from Real Africa to Sun International in subsidiaries where Sun International already exercises control. Post-merger, Sun International will acquire sole positive control over Afrisun KZN, Emfuleni Resorts, and Sunwest International, but this does not result in any aggregation of market share or increased concentration. The transaction does not raise any public interest concerns, as Real Africa's non-gaming interests will be disposed of after completion. The Tribunal agreed with the Commission that the merger is unlikely to substantially prevent or lessen competition in any market where the parties...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Sun International (South Africa) Limited and Real Africa Holdings Limited is approved unconditionally.