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ARTICLE · 02 DECEMBER 2005

‘Public Interest’ Grounds Considered in Anti-Competitive Merger

Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
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Cliffe Dekker Hofmeyr

Cliffe Dekker Hofmeyr

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The Competition Tribunal has recently considered the question of whether or not an anti-competitive merger can be saved on grounds that a firm is controlled by previously disadvantaged individuals, one of the 'public interest' grounds the tribunal is enjoined to consider in terms of Competition Act.

South AfricaAntitrust/Competition Law
Mondo Ntlha
Mondo Ntlha

The Competition Tribunal has recently considered the question of whether or not an anti-competitive merger can be saved on grounds that a firm is controlled by previously disadvantaged individuals, one of the 'public interest' grounds the Tribunal is enjoined to consider in terms of Competition Act. This issue arose in the hospital sector of the healthcare industry which comprises three main hospital groups: Afrox, Medi-Clinic and Netcare.

The proposed transaction was between Bidco and Afrox Oxygen whereby Afrox Oxygen would sell its 69% shareholding in Afrox Health, its listed healthcare subsidiary, to Bidco. Bidco (as it was then) would be held as to 75% by Mvelaphanda and Brimstone (the BEE entities) and 25% by Medi-Clinic Corporation Limited (Medi-Clinic).

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