COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 09/LM/Jan09
In the matter between:
Investec Bank Ltd Acquiring Firm
and
Anglo-V3 (Pty) Ltd Target Firm
Panel : N Manoim (Presiding Member), U Bhoola (Tribunal
Member) and M Mokuena (Tribunal Member)
Heard on : 11 March 2009
Order issued on : 11 March 2009
Reasons issued on : 18 March 2009
Reasons for Decision
Introduction
[1] On 11 March 2009 the Tribunal approved the acquisition by Investec Bank
Ltd of 60% of the issued share capital in Anglo-V3 Crane Hire (Pty) Ltd. The
reasons follow below.
The transaction and parties
[2] Investec Bank Ltd (“Investec”) will, by means of a leveraged buy-out, acquire
60 “B” ordinary shares in the issued ordinary share capital of Anglo V3 Crane
Hire (Pty) Ltd (“Anglo V3’). This shall constitute 60% of the entire issued
share capital of Anglo V3 and entitle Investec to 50% of the voting rights
accruing to shareholders in Anglo V3.
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[3] Investec is controlled by Investec Bank Ltd. The target firm, Anglo V3, is a
family owned crane hire business which is controlled by three different family
trusts, the JVS Trust No1 (holds 40% of the shares in Anglo V3), the JVS
Trust no 2 (30%) and the HVS Trust (30%).
[4] Investec, the JVS Trust no 1 and the HVS Trust will jointly controll Anglo V3
post this transaction.
[5] Following the acquisition the business will be transferred to a newly formed
private company; the parties to the transaction will procure that a private
company be formed as a subsidiary of Anglo V3 to acquire the said business.
The new company will be owned 74% by Anglo V3 and 26% by BEE
investors.
Rationale for the transaction
[6] The transaction presents an attractive investement to Investec as it is one of
the largest crane companies in South Africa. From the sellers perspective the
transaction will facilitate the partial exit of the shareholders in Anglo V3 and
will also result in the introduction of a broad based BEE shareholder.
Effect on Competition
[7] Investec Ltd is an international specialist banking group that provides a
diverse range of financial products and services to a niche client base . Its
services include investment banking, treasury and special finance, private
banking services and asset management. Anglo V3 specialises in mobile
crane hire, specialised transport of loads with abnormal dimensions, rigging
and other associated services. It offers its services nationally.
[8] The Commission found that t here is no horizontal overlap in the activities of
the merging parties.
[9] In light of the above the Tribunal finds that the proposed transaction is
unlikely to substantially prevent or lessen competition.
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Public Interest
[10] The transaction does not raise any significant public interest concerns.
___________________ 18 March 2009
N Manoim Date
U Bhoola and M Mokuena concurring.
Tribunal Researcher: R Badenhorst
For the merging parties: DLA Cliffe Dekker Hofmeyr
For the Commission: Kwena Mahlakoane
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