Outcome of cases heard by the Tribunal: Wednesday 02 May 2019
| Type of matter | Parties involved | Commission’s recommendation to the Tribunal | Tribunal Decision |
| Large merger | Old Mutual Life And AE-AMD Independent Power Producer 3 (RF) (Pty) Ltd and AE-AMD Independent Power Producer 1 (RF) (Pty) Ltd | Approval without conditions | Approved without conditions |
| Large merger | Zalorno B.V Ltd And Blue Falcon 222 Trading (RF) (Pty) Ltd | Approval without conditions | Approved without conditions |
| Large merger | AFHCO Consortium 2 (Pty) Ltd And Menlyn East End Developments (Pty) Ltd in Respect of Menlyn East Development | Approval without conditions | Approved without conditions |
Merger approved whereby Old Mutual Life Assurance SA acquires ISP’s
The Tribunal has approved a proposed merger, without conditions, whereby Old Mutual Life Assurance Company (South Africa) Ltd (OMLACSA) seeks to acquire AE-AMD Independent Power Producer 3 (RF) (Pty) Ltd (Herbert) and AE-AMD Independent Power Producer 1 (RF) (Pty) Ltd (Greefspan).
OMLCSA is a long-term insurer which provides various products including disability, health, life, reclassified retrenchment, and sinking fund insurance policies. It also operates in the renewable energy sector and invests in a number of projects under the government’s Renewable Energy Independent Power Purchase Procurement Program (REIPPPP).
Herbert and Greefspan are Independent Power Producers which have been awarded tenders under the REIPPPP to supply electricity generated from renewable sources (in this case solar) to Eskom. Herbert owns and operates a 22-megawatt solar plant for purposes of the tender, while Greefspan owns and operates an 11-megawatt solar plant. Both plants are located in the Northern Cape.
In its assessment, the Competition Commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. In addition, the Commission found that there were no other public interest concerns.
Proposed merger approved in the market for the mining of metals, minerals and energy products (specifically, the mining of manganese ore in the Northern Cape)
The Tribunal has approved the proposed merger, without conditions, whereby Zalorno B.V. Limited (“Zalorno”) intends to acquire Blue Falcon 222 Trading (RF)(Pty) Ltd (“Blue Falcon”).
Zalorno, a company incorporated in accordance with the laws of the Netherlands, is wholly-owned by Glencore Plc (“Glencore”), a public company listed on the London Stock Exchange. Zalorno jointly controls Blue Falcon with Imalivest GP Ltd (“Imalivest”). Blue Falcon, in turn, holds shareholding in Mokala Manganese (Pty) Ltd (“Mokala’). Glencore and all the firms controlled by it are collectively referred to as the Acquiring Group.
The Acquiring Group operates internationally as a supplier of raw materials to industrial consumers. In South Africa, its operations are limited to the business of mining metals, minerals and energy products. It does not mine manganese anywhere in the world.
However, the Competition Commission (in its assessment of the proposed transaction) noted that the Acquiring Group provides marketing services for mines producing various commodities worldwide. The Acquiring Group will market all of Mokala’s ore output to customers internationally once Mokala commences operation.
Blue Falcon does not currently conduct any activities. It is a special purpose vehicle investment company incorporated for the purpose of holding Glencore and Imalivest’s investment in Mokala.
Mokala holds a mining right over a manganese ore resource situated in Kuruman, in the Northern Cape. This right is anticipated to be developed into a mine in the fourth quarter of 2019 and the operations of the mine are projected to commence around October 2020.
The proposed transaction does not raise any competition or public interest concerns.
Tribunal approves proposed property merger without conditions
The Tribunal has approved the proposed transaction, without conditions, whereby AFHCO Consortium 2 (Pty) Ltd (“AFHCO Consortium”) intends to acquire properties currently owned by Menlyn East End Development (“MEED”).
The properties are residential units (that are yet to be developed) situated in Garsfontein, in Pretoria East.
AFHCO Consortium is a developer and investor in affordable housing and commercial property. It owns office, retail and industrial properties in the Johannesburg inner city, Pretoria and Centurion. MEED is a property developer with a focus on residential properties.
The transaction does not present any competition or public interest concerns.
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