TFMC Holdings (Pty) Ltd and LGM South Africa Facilities Managers and Engineers (Pty) Ltd (104/LM/Dec06) [2007] ZACT 1 (9 January 2007)

TFMC Holdings (Pty) Ltd and LGM South Africa Facilities Managers and Engineers (Pty) Ltd (104/LM/Dec06) [2007] ZACT 1 (9 January 2007)

The Tribunal found that the merger between TFMC Holdings and LGM South Africa Facilities Managers and Engineers would not substantially prevent or lessen competition in either the facilities management or infrastructure property management markets. The combined market shares post-merger would remain low, and customers have significant countervailing power. The Tribunal noted that barriers to entry are low and that customers can easily switch providers or provide services in-house. No public interest issues were identified that would alter this conclusion. Accordingly, the merger was approved without conditions.

Citation
[2007] ZACT 1
Parties
Applicant: TFMC Holdings (Pty) Ltd; Respondent: LGM South Africa Facilities Managers and Engineers (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 January 2007
Case Number
104/LM/Dec06
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, M Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Barriers to Entry
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Barriers to Entry

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Parties

TFMC Holdings (Pty) Ltd

Applicant

LGM South Africa Facilities Managers and Engineers (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between TFMC Holdings (Pty) Ltd and LGM South Africa Facilities Managers and Engineers (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether there are any public interest concerns that would warrant prohibition or conditions on the merger.

Ratio Decidendi

The Tribunal found that the merger between TFMC Holdings and LGM South Africa Facilities Managers and Engineers would not substantially prevent or lessen competition in either the facilities management or infrastructure property management markets. The combined market shares post-merger would remain low, and customers have significant countervailing power. The Tribunal noted that barriers to entry are low and that customers can easily switch providers or provide services in-house. No public interest issues were identified that would alter this conclusion. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between TFMC Holdings (Pty) Ltd and LGM South Africa Facilities Managers and Engineers (Pty) Ltd is approved unconditionally.