Zico Capital Two Proprietary Limited v Goldrush Group Proprietary Limited (LM013APR16) [2016] ZACT 75 (20 September 2016)

Zico Capital Two Proprietary Limited v Goldrush Group Proprietary Limited (LM013APR16) [2016] ZACT 75 (20 September 2016)

The Tribunal found that, following the approval of a prior small merger in which Goldrush acquired Crazy Slots, there was no longer any horizontal or vertical overlap between the merging parties. The Commission concluded that the proposed transaction was unlikely to substantially prevent or lessen competition within the relevant market. The Tribunal agreed with this assessment and further found that there were no negative effects on employment or other public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2016] ZACT 75
Parties
Applicant: Zico Capital Two Proprietary Limited; Respondent: Goldrush Group Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 September 2016
Case Number
LM013Apr16
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved unconditionally.
Judges
Medi Mokuena, Anton Roskam, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Regulated Gaming Services
Competition Law Merger Control Horizontal Overlap Public Interest Regulated Gaming Services

Case Brief

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Parties

Zico Capital Two Proprietary Limited

Applicant

Goldrush Group Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that, following the approval of a prior small merger in which Goldrush acquired Crazy Slots, there was no longer any horizontal or vertical overlap between the merging parties. The Commission concluded that the proposed transaction was unlikely to substantially prevent or lessen competition within the relevant market. The Tribunal agreed with this assessment and further found that there were no negative effects on employment or other public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between Zico Capital Two Proprietary Limited and Goldrush Group Proprietary Limited is approved without conditions.