COMPETITION TRIBUNAL OF SOUTH AFRICA
Case NO: 28/LM/Mar08
In the matter between
Mvelaphanda Holdings (Pty) Ltd Primary Acquiring firm
And
Queensgate Leisure Holdings (Pty) Ltd Primary Target Firm
Panel : D Lewis (Tribunal member); Yasmin Carrim (Tribunal member) and
N Manoim (Tribunal member)
Heard on : 14 May 2008
Decided on : 14 May 2008
Reasons Issued : 21 May 2008
Reasons for decision
Approval
[1] On 14 May 2008 the Competition Tribunal issued a Merger Clearance Certificate
approving the merger between Mvelaphanda Holdings (Pty) Ltd and Queensgate Leisure
Holdings (Pty) Ltd unconditionally. The reasons for the approval appear below.
Parties
[2] The primary acquiring firm is Mvelaphanda Holdings (Pty) Ltd (“Mvelaphanda”), a
company incorporated in terms of the laws of the Republic of South Africa. Mvelaphanda is
jointly controlled by the Dikela Family Trust, TJS Family Trust, Mvelaphanda Investment
Trust, Mvelaphanda Empowerment Trust and the Mtimba Trust.
[3] The primary target firm is Queensgate Leisure Holdings (Pty) Ltd (“QLH”). QLH is a wholly
owned subsidiary of Queensgate Holdings (Pty) Ltd (“Queensgate”).
Transaction
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[4] In terms of the proposed transaction, Mvelaphanda intends to acquire 50% share in
QLH from Queensgate. On completion, Mvelaphanda and Queensgate will each hold 50%
share in QLH.
Rationale for the Transaction
[5] As an investment company, Mvelaphanda seeks to expand its investment portfolio by
investing in the growth prospects of QLH.
[6] Queensgate and QLH wish to expand their business and take advantage of
perceived growth opportunities within the South African leisure industry. Further,
Queensgate and QLH state that Mvelaphanda is able to provide them with finance, access
to business leadership, business networks and Black Economic Empowerment credentials.
Parties Activities
[7] Mvelaphanda is a private investment Black Economic Empowerment company.
Mvelaphanda’s investment portfolio includes activities in mining and resources, technical
services, financial services, healthcare, construction, property development, security,
facilities management, food services, support services and general industrial sectors.
[8] QLH is an investment holding company with interests in the leisure and
hospitality industry, particularly hotels and hospitality services as well as
business development services, i.e. restaurants and health spa’s.1
Competition Analysis
[9] There is no overlap between the activities of the merging parties as the acquiring firm
does not have interests in the leisure and hospitality industry where the primary target firm is
active.
Public Interest Issues
[10] There are no public interest issues.
Conclusion
[11] We accordingly agree with the Commission that the transaction is unlikely to
1 QLH owns interests in hotels, wellness and conference centres which include, inter alia, Radisson
Hotel, Cape Town Hollow Hotel, Tinga Private Game Reserve, Avenue Hotel and Pavilion Conference
Centre at the BMW Pavilion.
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substantially prevent or lessen competition and is approved without conditions.
___________________ 21 May 2008
D Lewis Date
Tribunal Member
Concurring: Y Carrim and N Manoim
Tribunal Researcher : I Selaledi
For the merging parties : STBB Attorneys
For the Commission : Makgale Mohlala and William Kganare
(Mergers & Acquisitions)
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