VCAP1 Alliances (Pty) Ltd v Virtual Payment Solutions (Pty) Ltd and Another (LM205Mar23) [2023] ZACT 25 (30 May 2023)
- Citation
- [2023] ZACT 25
- Status
- Order
- Jurisdiction
- South Africa
- Court
- Competition Tribunal
- Panel
- S Goga, M Mazwai, F Tregenna
- Case number
- LM205Mar23
More details
- Court
- Competition Tribunal
- Panel
- S Goga, M Mazwai, F Tregenna
- Case number
- LM205Mar23
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
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).
02
Material facts
Parties
VCAP1 Alliances (Pty) Ltd
ApplicantVirtual Payment Solutions (Pty) Ltd
RespondentSwitchone (Pty) Ltd
Respondent03
Procedural history
Posture
Merger Control / Merger Approval
04
Questions and positions
Legal issues
- 01
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.
- 02
Whether the merger raises any competition concerns warranting prohibition or conditions.
Party arguments
- Applicant
- The applicant sought approval for the merger in accordance with Chapter 3 of the Competition Act, asserting that the transaction does not substantially prevent or lessen competition and complies with the requirements of the Act.
- Respondent
- The respondents did not oppose the merger and did not submit arguments against approval.
05
Court’s reasoning
Legal principles
- 01
Competition Act, 1998, section 16(2)(a)
A merger may be approved if it does not substantially prevent or lessen competition, or if any negative effects can be justified on public interest grounds.
- 02
Competition Tribunal Rule 35(5)(a)
The Tribunal must issue a Merger Clearance Certificate upon approval of a merger.
06
Ratio, limits and disposition
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.
- 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).
Source and reliance status
Competition Tribunal
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Competition Tribunal
Order
COMPETITION
TRIBUNAL OF SOUTH AFRICA
Case No.: LM205Mar23
In the matter between:
VCAP1 Alliances (Pty) Ltd Primary Acquiring Firm
And
Virtual Payment Solutions (Pty) Ltd and Switchone (Pty) Ltd Primary Target Firms
Panel: S Goga (Presiding Member), M Mazwai (Tribunal Member), F Tregenna (Tribunal Member)
Heard on: 30 May 2023
Decided on: 30 May 2023
ORDER
Further to the recommendation of the Competition Commission in terms of section 14A(1)(b) of the Competition Act, 1998 (“the Act”) the Competition Tribunal orders that–
1. the merger between the abovementioned parties be approved in terms of section 16(2)(a) of the Act; and
2. a Merger Clearance Certificate be issued in terms of Competition Tribunal Rule 35(5)(a).
Signed by:Sha'ista Goga
Signed at:2023-05-30 11:25:34 +02:00
Reason:Witnessing Sha'ista Goga
Presiding Member Ms Sha’ista Goga
Concurring: Prof Fiona Tregenna and Ms Mondo Mazwai
Date: 30 May 2023
Merger Clearance Certificate
To : Webber Wentzel Attorneys
You applied to the Competition Commission on 23 March 2023 for merger approval in accordance with Chapter 3 of the Competition Act.
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