Telkom SA Ltd and Business Connexion Group Ltd (51/LM/Jun06) [2006] ZACT 80 (4 October 2006)

Telkom SA Ltd and Business Connexion Group Ltd (51/LM/Jun06) [2006] ZACT 80 (4 October 2006)

The Tribunal found that the Commission had provided sufficient and reasonable grounds for the requested extension. The replacement of the lead investigator, the need for further information from third parties and merging parties, and the recent appointment of expert consultants were all considered valid and interconnected reasons. The Tribunal held that the Commission's duty to conduct a thorough investigation outweighs any prejudice to the merging parties arising from their own contractual deadlines. The lateness of consultant appointments and delays in responses were not, in themselves, evidence of dilatory conduct by the Commission. The Tribunal emphasized that the Commission must be...

Citation
[2006] ZACT 80
Parties
Acquiring Firm: Telkom SA Ltd; Target Firm: Business Connexion Group Ltd; Applicant: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 October 2006
Case Number
51/LM/Jun06
Procedural Posture
Stay Application / Application for Extension of Merger Referral Period
Outcome
Application for extension granted.
Judges
N Manoim
Legal Topics
Merger Review, Extension of Referral Period, Public Interest, Third Party Consultation, Electronic Communications Act, Investigative Procedure
Competition Law Merger Review Extension of Referral Period Public Interest Third Party Consultation Electronic Communications Act Investigative Procedure

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Parties

Telkom SA Ltd

Acquiring Firm

Business Connexion Group Ltd

Target Firm

Competition Commission

Applicant

Procedural Posture

Stay Application / Application for Extension of Merger Referral Period

Legal Issues

  1. 1 Whether the Competition Commission has shown adequate grounds for a further extension of the merger referral period.
  2. 2 Whether the delay prejudices the merging parties or compromises the Commission's public duty.
  3. 3 Whether the lateness in appointing consultants and obtaining information justifies the extension.

Ratio Decidendi

The Tribunal found that the Commission had provided sufficient and reasonable grounds for the requested extension. The replacement of the lead investigator, the need for further information from third parties and merging parties, and the recent appointment of expert consultants were all considered valid and interconnected reasons. The Tribunal held that the Commission's duty to conduct a thorough investigation outweighs any prejudice to the merging parties arising from their own contractual deadlines. The lateness of consultant appointments and delays in responses were not, in themselves, evidence of dilatory conduct by the Commission. The Tribunal emphasized that the Commission must be...

Court Disposition

Application for extension granted.

Orders

  • The period for the Competition Commission to forward its recommendation in respect of the merger is extended by 15 business days.
  • The Commission must file its recommendation by 17 October 2006.