Standard Bank of South Africa Limited and Worldwide African Investment Holdings (Pty) Ltd (09/LM/Feb05) [2005] ZACT 22 (19 April 2005)

Standard Bank of South Africa Limited and Worldwide African Investment Holdings (Pty) Ltd (09/LM/Feb05) [2005] ZACT 22 (19 April 2005)

The Tribunal found that there is no horizontal overlap in the activities of the merging parties or their subsidiaries, and no vertical concerns arise from the merger. The transaction is intended to capitalise Worldwide and improve its empowerment profile. The Tribunal agreed with the Commission's recommendation that the merger is unlikely to substantially prevent or lessen competition in any market and that there are no significant public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2005] ZACT 22
Parties
Applicant: Standard Bank of South Africa Limited; Respondent: Worldwide African Investment Holdings (Pty) Ltd; Respondent: Khathuma Investments (Pty) Ltd; Respondent: Release Investments (Pty) Ltd; Respondent: Mr K Ngqula; Respondent: Jani Family Trust; Respondent: Nedcor Investments (Pty) Ltd; Respondent: Mr Lot Ndlovu
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 April 2005
Case Number
09/LM/Feb05
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved unconditionally.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Large Merger Review, Public Interest Assessment, Horizontal Overlap, Vertical Concerns, Empowerment Profile, Merger Clearance
Competition Law Commercial and Corporate Large Merger Review Public Interest Assessment Horizontal Overlap Vertical Concerns Empowerment Profile Merger Clearance

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Parties

Standard Bank of South Africa Limited

Applicant

Worldwide African Investment Holdings (Pty) Ltd

Respondent

Khathuma Investments (Pty) Ltd

Respondent

Release Investments (Pty) Ltd

Respondent

Mr K Ngqula

Respondent

Jani Family Trust

Respondent

Nedcor Investments (Pty) Ltd

Respondent

Mr Lot Ndlovu

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any market.
  2. 2 Whether there are any significant public interest concerns arising from the merger.
  3. 3 Whether the transaction should be approved unconditionally.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap in the activities of the merging parties or their subsidiaries, and no vertical concerns arise from the merger. The transaction is intended to capitalise Worldwide and improve its empowerment profile. The Tribunal agreed with the Commission's recommendation that the merger is unlikely to substantially prevent or lessen competition in any market and that there are no significant public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Standard Bank of South Africa Limited and Worldwide African Investment Holdings (Pty) Ltd is approved without conditions.