Venfin Media Investments (Pty) Limited and Sail Group Ltd (67/LM/Sep04) [2005] ZACT 12; [2005] 1 CPLR 254 (CT) (1 March 2005)

Venfin Media Investments (Pty) Limited and Sail Group Ltd (67/LM/Sep04) [2005] ZACT 12; [2005] 1 CPLR 254 (CT) (1 March 2005)

The Tribunal found that the merger did not raise any horizontal competition concerns, as there was no overlap between the activities of the acquiring firms and SAIL. Vertical concerns regarding the potential for foreclosure of rival broadcasters in sports broadcasting rights were thoroughly investigated. The Tribunal accepted evidence that decisions regarding broadcasting rights are made by independent sporting bodies, such as SANZAR and the PSL, and not by SAIL or its affiliates. The Commission's consultation with rival broadcasters revealed no objections to the merger. The Tribunal concluded that the transaction would not result in a substantial prevention or lessening of competition,...

Citation
[2005] ZACT 12
Parties
Applicant: Venfin Media Investments (Pty) Limited; Respondent: Sail Group Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 March 2005
Case Number
67/LM/Sep04
Procedural Posture
Large Merger / Merger Clearance Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, MTK Moerane, Medi Mokuena
Legal Topics
Merger Control, Vertical Integration, Broadcasting Rights, Public Interest, Scheme of Arrangement
Competition Law Commercial and Corporate Merger Control Vertical Integration Broadcasting Rights Public Interest Scheme of Arrangement

Case Brief

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Parties

Venfin Media Investments (Pty) Limited

Applicant

Sail Group Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance Approval

Legal Issues

  1. 1 Whether the merger between Venfin Media Investments (Pty) Limited, Tree Tell 23 (Pty) Ltd, the SAIL Management Consortium, and SAIL Group Ltd raises competition concerns.
  2. 2 Whether the transaction creates vertical foreclosure risks in sports broadcasting rights due to the acquiring firms' interests in e-tv.
  3. 3 Whether the merger raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the merger did not raise any horizontal competition concerns, as there was no overlap between the activities of the acquiring firms and SAIL. Vertical concerns regarding the potential for foreclosure of rival broadcasters in sports broadcasting rights were thoroughly investigated. The Tribunal accepted evidence that decisions regarding broadcasting rights are made by independent sporting bodies, such as SANZAR and the PSL, and not by SAIL or its affiliates. The Commission's consultation with rival broadcasters revealed no objections to the merger. The Tribunal concluded that the transaction would not result in a substantial prevention or lessening of competition,...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Venfin Media Investments (Pty) Limited, Tree Tell 23 (Pty) Ltd, the SAIL Management Consortium, and SAIL Group Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.