Clidet No. 390 (Pty) Ltd and Unihold Limited (27/LM/May02) [2002] ZACT 36 (3 June 2002)

Clidet No. 390 (Pty) Ltd and Unihold Limited (27/LM/May02) [2002] ZACT 36 (3 June 2002)

The Tribunal found that the overlap between the parties in the outsourced IT desktop services market was minimal, with the combined market share of AST-DST and SBS not exceeding 10%. Furthermore, neither ABSA nor Unihold exercised control over the relevant entities, precluding the possibility of coordinated conduct or anti-competitive influence. The Tribunal concluded that the merger would not substantially lessen or prevent competition in any market, and that there were no public interest concerns that would justify prohibiting or conditioning the transaction. The merger was therefore approved unconditionally.

Citation
[2002] ZACT 36
Parties
Applicant: Clidet No. 390 (Pty) Ltd; Respondent: Unihold Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 June 2002
Case Number
27/LM/May02
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
N. Manoim, D. H. Lewis, U. Bhoola
Legal Topics
Large Merger Review, Market Share Analysis, Control and Influence, Public Interest Considerations
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Control and Influence Public Interest Considerations

Case Brief

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Parties

Clidet No. 390 (Pty) Ltd

Applicant

Unihold Limited

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Clidet No. 390 (Pty) Ltd and Unihold Limited will substantially lessen or prevent competition in any relevant market.
  2. 2 Whether there are any public interest concerns that would warrant prohibiting or conditioning the merger.

Ratio Decidendi

The Tribunal found that the overlap between the parties in the outsourced IT desktop services market was minimal, with the combined market share of AST-DST and SBS not exceeding 10%. Furthermore, neither ABSA nor Unihold exercised control over the relevant entities, precluding the possibility of coordinated conduct or anti-competitive influence. The Tribunal concluded that the merger would not substantially lessen or prevent competition in any market, and that there were no public interest concerns that would justify prohibiting or conditioning the transaction. The merger was therefore approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Clidet No. 390 (Pty) Ltd and Unihold Limited is approved without conditions.