Outcome of matters before the Tribunal, 8 March 2017

Murray and Roberts sells its Infrastructure and Business Platform

 

The Competition Tribunal has approved the unconditional merger whereby Murray and Roberts will sell its Infrastructure & Business Platform to a newly created black-owned firm Firefly Investments 319.

Concor is one of two entities through which Murray & Roberts conducts its I&B Platform business operations, the second entity being Forum SA Trading 284.

In terms of the proposed transaction, Firefly will acquire the entire I&B Platform from Murray and Roberts. The transaction will be concluded in separate phases and it will also be notified in Namibia and Botswana.

Firefly, a newly established firm wholly created for the proposed transaction, is ultimately controlled by Emancipa Investment Pty Ltd.

The deal will contain a restraint of trade agreement which will restrain Murray and Roberts from conducting business with actual or prospective clients, customers or suppliers of, or to, the I&B platform for a specified period.

 

Merger between Roche Molecular Systems and Kapa Biosystems approved

 

The Competition Tribunal has approved the merger of Roche Molecular Systems and Kapa Biosystems.

Competitor Illumina, a leading developer, manufacturer and marketer of life science tools and integrated systems for large scale analysis of genetic variation and biological function, raised foreclosure concerns with the Competition Commission. Illumina currently procures high fidelity enzymes from Kapa Biosystems in terms of a supply agreement.

Concerns regarding the impact of mergers on competitors has to be considered in every merger.

In terms of the agreement between the merging parties and Illumina, the supply of enzymes to Illumina has been guaranteed for seven years.

 

Samsung Electronics merger with Harman International Industries approved

 

The merger between South Korean-based Samsung Electronics and New York-listed Harman International Industries has been unconditionally approved. Post-transaction Samsung will have sole control of Harman, which will operate as a wholly-owned subsidiary of Samsung.

Samsung operates in South Africa through Samsung Electronics South Africa Pty Ltd while Harman controls a number of firms internationally but does not have any subsidiaries operating in South Africa.

The market relevant to this transaction includes is the provision of: audio home speakers; headphones and speakers; as well as the upstream markets for the provision of and  display panels, which can be used in the production of automotive electronics, and the downstream market for the provision of automotive electronics.

 

Fidelity Security Services to acquire ADT Security


The Tribunal has approved the large merger between Fidelity Security Services and ADT Security with conditions.

In terms of conditions imposed by the Commission and confirmed by the Tribunal Fidelity Security will inform the Commission in writing of the implementation date of the merger within five business days of its occurrence.

Fidelity Security also undertakes, for a period of 36 months from the implementation date,   voluntarily, to notify Small Mergers in terms of section 13 (2) of the Competition Act.

In terms of the agreement this condition will not in any way affect the notification requirements provided for in the Competition Act for transactions that meet the requirement of the Competition Act merger notification.

Fidelity Group is an integrated security solutions provider. Its key areas of business include alarm monitoring and armed response services, cash solutions including cash-in-transit services, cash management solutions and guarding.

Target firm ADT is a security solutions firm organised into both subscriber and commercial business units. Offerings include armed response services, monitoring services delivered via monitoring centres, home protection, manned guarding and electronic article surveillance.

 

Settlement by wire mesh and manufacturer NC Specialised Fasteners confirmed

 

NC Specialised Fasteners, who engaged in the manufacture and supply of sheet metal and wire mesh, is to pay an administrative penalty of R669 566.45 for agreeing with another company, Specialised Inserts CC, to divide up the market.

Specialised Inserts CC, manufacturer of turned metal parts, is a corporate leniency applicant in this case.

The Competition Commission initiated a complaint on the 19 May 2015 against the two companies for dividing up the markets by allocated specific types of goods and customers in the market for the manufacture and distribution of turned metal and sheet metal parts.

The respondents had conducted business off the same premises after April 2013 decided to part ways and divide the business between two individual into NC Specialised Fasteners and Specialised Inserts. The agreement at the time was that Specialised Inserts would manufacture turned metal parts and NC Specialised Fasteners would manufacture sheet metal parts and wire mesh. The respondents undertook not to compete with each other.

NC Specialised Fasteners initially opposed the complaint saying that the transaction had included restraint of trade provisions.

In terms of the settlement agreement, NC Specialised Fasteners undertakes the following: to confirm that the mentioned conduct has ceased and it will develop a compliance law programme and submit a copy to the Commission within 60 days of confirmation of the consent agreement.

NC Specialised Fasteners will pay the administrative penalty over 36 months.

 

Issued by:

Chantelle Benjamin

Communications: Competition Tribunal   

Tel (012)394 1383                                     

Cell: +27 (0) 73 007 5603  

Twitter: @comptrib                                       

E-Mail: chantelleb@comptrib.co.za

 

 

On Behalf Of:

Lerato Motaung                                                   

Registrar: Competition Tribunal                                        

Tel: (012) 394 3355                                             

Cell: +27 (0) 82 556 3221                                              

E-Mail: LeratoM@comptrib.co.za