Wesbank (a division of FirstRand Bank Ltd) and Barloworld Leasing (a division of Barloworld Capital) (92/LM/Dec02) [2003] ZACT 21 (9 April 2003)

Wesbank (a division of FirstRand Bank Ltd) and Barloworld Leasing (a division of Barloworld Capital) (92/LM/Dec02) [2003] ZACT 21 (9 April 2003)

The Tribunal found that the transaction does not result in a significant competitive change from the status quo. Barloworld's market share in all relevant segments is insignificant, and the change in concentration does not raise competition concerns. The merger will not provide Wesbank with preferential access to future customers or contracts. There are no public interest concerns that would alter this conclusion. Accordingly, the merger will not lead to a substantial lessening of competition and is unconditionally approved.

Citation
[2003] ZACT 21
Parties
Applicant: Wesbank, a division of FirstRand Bank Ltd; Respondent: Barloworld Leasing, a division of Barloworld Capital; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 April 2003
Case Number
92/LM/Dec02
Procedural Posture
Large Merger Review / Merger Clearance Certificate Issued
Outcome
Merger unconditionally approved.
Judges
N. Manoim, D. Lewis, P. Maponya
Legal Topics
Large Merger Review, Market Definition, Competitive Effects, Public Interest
Competition Law Banking and Finance Large Merger Review Market Definition Competitive Effects Public Interest

Case Brief

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Parties

Wesbank, a division of FirstRand Bank Ltd

Applicant

Barloworld Leasing, a division of Barloworld Capital

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Certificate Issued

Legal Issues

  1. 1 Does the proposed merger substantially lessen competition in the vehicle financing market?
  2. 2 Is there any public interest concern that would prevent approval of the merger?

Ratio Decidendi

The Tribunal found that the transaction does not result in a significant competitive change from the status quo. Barloworld's market share in all relevant segments is insignificant, and the change in concentration does not raise competition concerns. The merger will not provide Wesbank with preferential access to future customers or contracts. There are no public interest concerns that would alter this conclusion. Accordingly, the merger will not lead to a substantial lessening of competition and is unconditionally approved.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Wesbank and Barloworld Leasing is unconditionally approved.