Wendel Se v Tsebo Holdings Proprietary Limited (LM131Oct16) [2016] ZACT 120 (5 December 2016)

Wendel Se v Tsebo Holdings Proprietary Limited (LM131Oct16) [2016] ZACT 120 (5 December 2016)

The Tribunal found that there was no horizontal or vertical overlap between the activities of Wendel SE and Tsebo Holdings Proprietary Limited. The Competition Commission's investigation confirmed that the proposed transaction would not substantially prevent or lessen competition in any relevant market. Employment concerns raised by NUM were found to be unrelated to the merger, as retrenchments at Bureau Veritas Inspectorate Laboratories resulted from the loss of a key contract prior to the merger. No other public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2016] ZACT 120
Parties
Applicant: Wendel SE; Respondent: Tsebo Holdings Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 December 2016
Case Number
LM131Oct16
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
AW Wessels, Mondo Mazwai, Andiswa Ndoni
Legal Topics
Merger Control, Public Interest, Employment Effects
Competition Law Merger Control Public Interest Employment Effects

Case Brief

Summary, issues, holding and outcome

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Parties

Wendel SE

Applicant

Tsebo Holdings Proprietary Limited

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger between Wendel SE and Tsebo Holdings Proprietary Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that there was no horizontal or vertical overlap between the activities of Wendel SE and Tsebo Holdings Proprietary Limited. The Competition Commission's investigation confirmed that the proposed transaction would not substantially prevent or lessen competition in any relevant market. Employment concerns raised by NUM were found to be unrelated to the merger, as retrenchments at Bureau Veritas Inspectorate Laboratories resulted from the loss of a key contract prior to the merger. No other public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Wendel SE and Tsebo Holdings Proprietary Limited is approved unconditionally.