The Competition Tribunal (Tribunal) unconditionally approved a
merger between the Land and Agricultural Development Bank of South
Africa (Landbank) and Corporate Lending Book, an operating division
of Gro Capital Financial Services (Proprietary) Limited, on 30 May
2012. On 10 July 2012 the Tribunal published its reasons for the
The transaction involves the acquisition by the Land Bank of Gro
Cap's Corporate Lending Book, consisting mostly of sale book
debts. The transaction will allow the Land Bank to increase its
capacity and better fulfil its developmental mandate as defined in
the Land and Agricultural Development Bank Act, No. 15 of 2002.
The Competition Commission (Commission) found that a horizontal
and vertical overlap exists between the activities of the merging
parties. The horizontal overlap relates to the provision of retail
financing to agro-processing clients. The vertical overlap relates
to the Land Bank's provision of wholesale agricultural
financing to Corporate Lending Book for on-lend to agricultural
The Commission found that the proposed transaction is unlikely
to substantially prevent or lessen competition on the downstream
market for the provision of retail financing to the agricultural
sector, as the merging parties' post-merger market share will
remain below 30%.
The Tribunal concluded that the transaction raises no
significant public interest issues.
The Competition Commission recently found a dual distribution restraint to amount to a market allocation agreement between competitors, which is outright unlawful under the Competition Act, 89 of 1998.
Sub-Saharan Africa is primed for an era of sustainable growth. As other markets across Latin America and Asia face short-term challenges and many advanced economies decelerate, the outlook remains encouraging for sub-Saharan Africa to gather speed and create greater opportunities for its rapidly growing population.
Previous updates summarised the main provisions of the United Arab Emirates Federal Competition Law (Federal Law No. (4) of 2012) which came into force on 23 February 2013.
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