Industrial Partnership Investments Limited and Kagiso Trust Investments (Pty) Limited (92/LM/Sep05) [2006] ZACT 12 (15 February 2006)

COMPETITION TRIBUNAL 
REPUBLIC OF SOUTH AFRICA
       Case no.: 92/LM/Sep05  
In the large merger between: 
Industrial Partnership Investments Limited 
and 
Kagiso Trust Investments (Pty) Limited  
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Reasons
________________________________________________________________
Introduction
1. On   8   December   2005   the   Competition   Tribunal   approved   the   merger  
between   Industrial   Partnership   Investments   Limited   and   Kagiso   Trust  
Investments (Pty) Limited.
The transaction
2. Industrial Partnership Investments Ltd (“IPIL”), a special purpose vehicle  
wholly   owned   by   Remgro   Ltd   will   acquire   from   Nedcor   Investment  
Holdings Ltd and Liberty Group Ltd approximately 37.155% of the issued  
share capital in Kagiso Trust Investments (Pty) Ltd (“KTI”). In terms of the  
Shareholder’s agreement IPIL and Kagiso Trust, which holds 50.32% in  
KTI, will jointly control KTI.  
Rationale for the transaction
3. The proposed transaction constitutes a financial investment opportunity for  
Remgro and its shareholders.

Impact on Competition
4. Although both KTI and Remgro make equity investments in strategic firms,  
either   through   minority   positions   or   controlling   interests,   there   are   no  
overlaps in respect of the products produced or services provided.
5. Remgro is mainly focussed on investments in tobacco products, banking  
and   financial   services, 1  printing   and   packaging,   building   and   motor  
components,   life   assurance,   medical   services,   mining,   petroleum  
products, food, wine and spirits and various other trade mark products. It  
is not involved in the day­to­day management of these businesses and  
mainly concentrates on the management of investments and the provision  
of support.
6. KTI is the investment arm of Kagiso Trust, an empowerment group, which  
mainly   focuses   on   investment   banking   activities   that   do   not   require   a  
banking licence.      
7. In   light   of   the   above   we   find   that   the   transaction   will   not   substantially  
lessen or prevent competition.  
Public interest issues
8. The transaction does not raise any public interest concerns.
 
____________ 15 February 2006
N Manoim Date
Concurring:  D Lewis, Y Carrim
1  Remgro holds a 23% non­controlling interest in Rand Merchant Bank Holdings, a 17.2% non­controlling  
interest in Glenrand M.I.B Limited and 18% in FirstRand.
2