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[2015] ZACT 26
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Investec Bank Limited v MB Technologies Investments (Proprietary) Limited (020446) [2015] ZACT 26 (23 March 2015)
COMPETITION
TRIBUNAL OF SOUTH AFRICA
Case No: 020446
In the matter
between:
Investec
Bank
Limited
............................................................................................
Primary
Acquiring Firm
And
MB
Technologies Investments (Proprietary)
limited
...............................................
Primary
Target Firms
Panel: Medi Mokuena
(Presiding Member)
: Anton A Roskam
(Tribunal Member)
: Imraan I Valodia
(Tribunal Member)
Heard on: 4 March
2015
Order Issued on: 4
March 2015
Reasons Issued on:
23 March 2015
Reasons for
Decision (non-confidential)
Approval
[1] On 4 March 2015
the Competition Tribunal (“Tribunal”) unconditionally
approved the merger between Investec Bank
Limited (“investee”)
and MB Technologies investments (Proprietary) Limited (“MBT”).
[2] The reasons for
approving the proposed transaction follow.
Parties to
transaction
Primary acquiring
firm
[3] The primary
acquiring firm is Investec, an international specialist banking group
that provides a variety of financial products
and services to a niche
client base. It is a company incorporated in South Africa and a
wholly-owned subsidiary of Investec Limited.
Investec Limited is not
controlled by any single firm.
Primary target
firm
[4] MBT is active in
the information technology (“IT”) sector as a seller and
distributor of IT equipment. MBT is a
private company incorporated in
South Africa.
Proposed
transaction and rationale
[5] The proposed
transaction, through which Investec is exercising certain rights, is
the acquisition by Investec of ... of the
shares held in MBT.
Impact on
competition
[6] The Commission
found no horizontal overlap between the merging parties as Investec
is an international banking group which provides
financial services
as opposed to MBT which is a seller and distributor of IT equipment.
Further, Investec did not have a controlling
interest in any company
that sells or distributes IT hardware or equipment.
[7] The Commission
identified a vertical relationship between the merging parties as
Investec procures IT hardware and equipment
from MBT. The Commission
on analysing the effect of this relationship found that there were
many players in the market such as
Pinnacle Holdings and Mustek
Electronics who supply IT hardware and equipment throughout South
Africa. The Commission therefore
concluded that the proposed
transaction was unlikely to raise any foreclosure issues.
[8] Therefore the
Commission recommended that the transaction be approved as there is
no horizontal overlap and it does not raise
any foreclosure concerns.
We agree with the Commission’s recommendation and find that the
transaction is unlikely to substantially
lessen or prevent
competition.
Public interest
[9]
The merging parties confirmed that the proposed transaction will not
result in an adverse impact on employment.
1
The proposed transaction further raises no other public interest
concerns.
Conclusion
[10] In light of the
above, we conclude that the proposed transaction is unlikely to
substantially prevent or lessen competition
in any relevant market In
addition, no public interest issues arise from the proposed
transactions. Accordingly we approve the
proposed transaction
unconditionally.
23 March 2015
DATE
Imraan Valodia
Medi Mokuena and
Anton Roskam concurring
Tribunal Researcher:
Aneesa Ravat
For the merging
parties: Natalie von Ey of Cliffe Dekker Hofmeyr Inc.
For the Commission:
Amanda Mfuphi, Seema Nunkoo and Xolela Nokele
1
Inter
alia
merger
record page 6