Suprise, suprise?

There was one interesting Competition Tribunal hearing result yesterday: It involved Business Venture Investments No 976 (Pty) Ltd and Sage Group Ltd.

In essence Business Venture Investments No 976, a special purpose vehicle created by Momentum Group Ltd, intends to acquire 100% of the shares in Sage Group Ltd, except for the shares held by Sage Life. Four overlaps exist, including:

· The market for long-term insurance;

· The market for unit trusts;

· The market for short-term insurance; and

· The market for property rental.

A vertical relationship exists between Momentum and Sage. However, due to market structure and particular commitments, neither customer nor input foreclosure would likely prevail in the industry.

From a worst-case perspective, the merger will result in 400 job losses. However, the Commission is of the view that no significant employment concerns would arise from the transaction, as the retrenchment process would be implemented systematically.

The Commission has recommended that Tribunal approve the merger unconditionally.