After considering the proposed merger between Masscash, (a subsidiary of Massmart) and Finro, a wholesaler based in Port Elizabeth, the Competition Commission recommended that the merger be prohibited. The Commission found that Masscash and Finro were the closest competitors to each other in the Port Elizabeth region and surrounding areas, and a rivalry existed between the firms which benefits consumers. As such, the Commission concluded that the merger would lead to a lessoning of competition, and would allow the parties to increase prices post merger.

Despite these concerns, the Tribunal approved the merger, stating that there was insufficient economic evidence that the merged entity will adversely affect independent stores in the Port Elizabeth area. In its reasons for approving the merger, the Tribunal also criticised the Competition Commission's use of survey and statistical evidence in its investigation of the likely effect of the transaction. The decision comes despite remarks made by the Massmart chairman, Mark Lamberti, including that they should “take out competitors”, and “force them into a position where they make no money”.

The following mergers were approved unconditionally from November to February:

• Pareto Limited and Old Mutual Life Assurance Company (South Africa) Limited
• Dip Holdco LLP and New Delphi
• Absa Capital Private Equity Fund and Parchment Trading 72 (Pty) Ltd
• Masscash Holding (Pty) Ltd and 13 Score Supermarkets (Trading) (Pty) Ltd
• Masscash Holding (Pty) Ltd and Finro Enterprises (Pty) Ltd
• TP Hentiq 6128 (“Holdco”) and Partcorp Holdings (“Autozone”)
• Imperial Group (Pty) Ltd and Midas Group (Pty) Ltd
• Business Venture Investments No 1347 and Astor Group (Pty) Ltd and 3 Others

The following mergers were approved conditionally:

• Nedbank Ltd and Imperial Bank Ltd
• Remgro Limited and VenFin Limited

To read the decisions, click here.