About SAFLII
Databases
Search
Terms of Use
RSS Feeds
South Africa: Competition Tribunal
SAFLII
>>
Databases
>>
South Africa: Competition Tribunal
>>
2019
>>
[2019] ZACT 15
|
|
IAM NewCo v Investec Asset Management Holdings (Pty) Ltd and Investec Asset Management Ltd (LM236Jan19) [2019] ZACT 15 (11 March 2019)
COMPETITION
TRIBUNAL OF SOUTH AFRICA
Case
No: LM236Jan19
In
the matter between
IAM
NewCo
Primary Acquiring Firm
And
Investec
Asset Management Holdings (Pty) Ltd and
Investec
Asset Management
Ltd
Primary Target Firms
Panel
: Y Carrim
(Presiding Member)
: M Mazwai (Tribunal Member)
:
A Ndoni (Tribunal Member)
Heard on
: 20 February
2019
Order Issued on
: 20 February 2019
Reasons
Issued on : 11 March 2019
REASONS
FOR DECISION
Approval
[1] On
20 February 2019, the Tribunal unconditionally approved a transaction
in terms of
which 1AM NewCo ("NewCo") acquired sole control
of Investec Asset Management Holdings (Pty) Ltd ("IAM SA")
and Investec Asset Management Ltd ("1AM UK").
[2] The
reasons for the approval follow.
Parties to the transaction
Primary
Acquiring Firm
[3] NewCo
is a newly established entity incorporated and registered in
accordance
with the laws of the United Kingdom. NewCo was
incorporated solely for the purpose of the proposed transaction and
conducts no
activities pre-transaction.
Primary Target Firm
[4] The
primary target firms are 1AM SA and 1AM UK, which are controlled by
Investec Ltd
and Investec PLC respectively. Investec Ltd is listed on
the Johannesburg Stock Exchange, whereas Investec PLC is listed on
the
London Stock Exchange.
[5] 1AM
SA and 1AM UK are active in the provision of active investment
products and services
to institutional and advisor clients. Pertinent
to this transaction, the firms provide asset management services to
personal clients;
third party institutions; and intermediated savers.
Proposed
transaction and rationale
[6] In
terms of the transaction, NewCo will acquire the Asset Management
Businesses of
Investec PLC and Investec Ltd.
[7] In
terms of the rationale, the merging parties submit that the decision
to reorganise
Investee's Asset Management Business is in line with
strategic objectives.
Relevant
market and impact on competition
[8] The
Commission considered the activities of the merging parties and found
that the
proposed transaction does not present any horizontal or
vertical overlaps as the primary acquiring firm is a newly
incorporated
entity with no activities.
Public
interest
[9] The
parties to the transaction confirmed that the transaction would not
have
any adverse effects on employment as NewCo has no employees. The
employees of 1AM SA raised no concerns with the transaction.
[1]
The transaction raises no other public interest concerns.
Conclusion
[10] In
light of the above, we concluded that the transaction is unlikely to
substantially prevent or lessen
competition in any relevant market.
In addition, no adverse public interest issues arise from the
transaction. Accordingly, we
unconditionally approved the
transaction.
Ms.
Yasmin Carrim
Ms.
Mondo Mazwai and Ms. Andiswa Ndoni concurring.
11 March 2019
Date
Tribunal
Case Manager:
Andiswa Nyathi
For
the Merging Parties:
Mark Garden of Edward
Nathan Sonnenbergs Inc
For
the Commission :
Nolubabalo Myoli and Ratshidaho Maphwanya
[1]
The employees of 1AM SA are not represented by a trade union or
employee representative. Therefore. the head of HR, Mr. Johnathan
Shaw, confirmed the satisfaction of employees with the transaction.