VCAP1 Alliances (Pty) Ltd v Virtual Payment Solutions (Pty) Ltd and Another (LM205Mar23) [2023] ZACT 25 (30 May 2023)

VCAP1 Alliances (Pty) Ltd v Virtual Payment Solutions (Pty) Ltd and Another (LM205Mar23) [2023] ZACT 25 (30 May 2023)

The Tribunal found that the proposed merger between VCAP1 Alliances (Pty) Ltd and Virtual Payment Solutions (Pty) Ltd and Switchone (Pty) Ltd does not raise competition concerns under the Competition Act. The Competition Commission recommended approval, and no evidence was presented to suggest the merger would substantially prevent or lessen competition. Accordingly, the Tribunal approved the merger in terms of section 16(2)(a) of the Act and ordered that a Merger Clearance Certificate be issued.

Citation
[2023] ZACT 25
Parties
Applicant: VCAP1 Alliances (Pty) Ltd; Respondent: Virtual Payment Solutions (Pty) Ltd; Respondent: Switchone (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 May 2023
Case Number
LM205Mar23
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
S Goga, M Mazwai, F Tregenna
Legal Topics
Merger Control, Competition Act Section 16, Merger Clearance Certificate
Competition Law Merger Control Competition Act Section 16 Merger Clearance Certificate

Case Brief

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Parties

VCAP1 Alliances (Pty) Ltd

Applicant

Virtual Payment Solutions (Pty) Ltd

Respondent

Switchone (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between VCAP1 Alliances (Pty) Ltd and Virtual Payment Solutions (Pty) Ltd and Switchone (Pty) Ltd should be approved under the Competition Act.
  2. 2 Whether the merger raises any competition concerns warranting prohibition or conditions.

Ratio Decidendi

The Tribunal found that the proposed merger between VCAP1 Alliances (Pty) Ltd and Virtual Payment Solutions (Pty) Ltd and Switchone (Pty) Ltd does not raise competition concerns under the Competition Act. The Competition Commission recommended approval, and no evidence was presented to suggest the merger would substantially prevent or lessen competition. Accordingly, the Tribunal approved the merger in terms of section 16(2)(a) of the Act and ordered that a Merger Clearance Certificate be issued.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between VCAP1 Alliances (Pty) Ltd and Virtual Payment Solutions (Pty) Ltd and Switchone (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).