Trialpha Investment Vehicle v Kouga Wind Farm (Rf) (Pty) Ltd and Others (LM128Oct16) [2017] ZACT 1; [2017] 1 CPLR 411 (CT) (19 January 2017)

Trialpha Investment Vehicle v Kouga Wind Farm (Rf) (Pty) Ltd and Others (LM128Oct16) [2017] ZACT 1; [2017] 1 CPLR 411 (CT) (19 January 2017)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the market for the supply of renewable energy to Eskom in South Africa. The merged entity's market share would remain low, and the structure of the market—where competition occurs during the bidding process for...

Source-derived case information.

Citation
[2017] ZACT 1
Parties
Applicant: Trialpha Investment Vehicle; Respondent: Kouga Wind Farm (RF) (Pty) Ltd; Respondent: Rustmo1 Solar Farm (RF) (Pty) Ltd; Respondent: Slimsun (RF) (Pty) Ltd; Respondent: Solar Capital De Aar (RF) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 January 2017
Case Number
LM128Oct16
Procedural Posture
Merger Application / Approval and Reasons
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Large Merger, Renewable Energy Market, Horizontal Overlap, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Large Merger Renewable Energy Market Horizontal Overlap Public Interest Market Share Analysis

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Parties

Trialpha Investment Vehicle

Applicant

Kouga Wind Farm (RF) (Pty) Ltd

Respondent

Rustmo1 Solar Farm (RF) (Pty) Ltd

Respondent

Slimsun (RF) (Pty) Ltd

Respondent

Solar Capital De Aar (RF) (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the market for the supply of renewable energy to Eskom in South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the market for the supply of renewable energy to Eskom in South Africa. The merged entity's market share would remain low, and the structure of the market—where competition occurs during the bidding process for long-term contracts—means that post-merger competitive dynamics are limited. Furthermore, the transaction raised no public interest concerns, including effects on employment, as the target firms would continue to operate as before. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Trialpha Investment Vehicle and the target firms is approved without conditions.