2014/15 Annual Report

Annual Report 2014/15
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Back row, from left to right: Brenda Maseko, Dineo Mashego, Relebohile Thabane, Grashum Mutizwa, Hugh Dlamini, Mogau Aphane, Thelani Luthuli, Xolela Nokele,
Rakgole Mokolo, Amanda Mfuphi, Prishani Maheeph, Seabelo Molefe, Nolubabalo Myoli, Daniela Bove, Hardin Ratshisusu, Maanda Lambani.
Front row, from left to right: Lindiwe Khumalo, Zanele Hadebe, Seema Nunkoo, Portia Bele, Billy Mabatamela, Reabetswe Molotsi, Thato Mkhize,
Nompucuko Nontombana
particularly the time it takes to complete an investigation. The service standards
are necessary as the Act has set out timeframes for investigations that apply
to a merger, irrespective of complexity. Small or intermediate mergers must
be reviewed within 20 business days and the Commission can extend this by
a maximum of 40 business days. Large mergers must be reviewed within 40
business days and, upon an application made by the Commission, the Tribunal
may grant an extension of the investigation period of no more than 15 business
days at a time.
11.1. Performance Overview
11.1.1. Merger activity
During the year under review, the Commission received 395 merger notifications.
This is a significant increase from the previous year’s 320. The majority of mergers
received were intermediate mergers. There was an unprecedented increase in
mergers in the furniture retail markets, telecommunication industry and the dairy
sector. The mergers in the furniture retail market were driven by the Ellerines
business being placed under business rescue in terms of the Companies Act.
During this financial year, the Commission finalised 375 merger investigations,
a marked increase from 329 in the previous year. Of the 375 cases finalized,
108 were large, 251 intermediate and 16 small mergers. Of the 375 finalised
cases, 321 were approved without conditions, 43 with conditions, five (5) cases
were prohibited (compared with one in the previous year) and six (6) cases
were withdrawn after the Commission started its investigation or due to the
Commission not having jurisdiction to investigate the mergers.
The five (5) merger applications prohibited by the Commission were:
Between Lowveld Hospital (Pty) Ltd and Life Healthcare Group (Pty) Ltd;
The acquisition of the fresh dairy business of Nkunzi Milkyway (Pty) Ltd by
Clover S.A (Pty) Ltd;
The acquisition of the Gallagher Convention Centre by Hosken Consolidated
Investments Limited;
The acquisition of 40% equity interest in SunWest International (Pty) Ltd and
Worcester Casino (Pty) Ltd by Tsogo Sun Holdings Ltd; and
The acquisition of Arkema Resins (Pty) Ltd by Ferro Industrial Products (Pty) Ltd.