Automated Summary
Key Facts
The Competition Tribunal approved the merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division of Unihold Group Ltd on 2001-09-20 without conditions. Both parties operate in South Africa's IT services market: SBS specializes in IT infrastructure (80% of its business), while UBS focuses on software solutions (BIM, CRM, E-Commerce) and marginally resells HP/Compaq components. Their combined market share is less than 1%, competing with larger firms like Dimension Data (12.7%), AST (11.7%), and EDS (11.3%). The tribunal concluded the merger would not harm competition and could strengthen market competition against major players.
Issues
- The Competition Tribunal evaluated whether the merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division would harm competition in the South African IT services market. Both parties had market shares below 1%, and the tribunal concluded the merger would not negatively impact competition but could create a more effective competitor to challenge larger firms like Dimension Data.
- The tribunal considered public interest factors, including employment effects. Restructuring following the merger could result in up to 40 retrenchments in finance, administration, and logistics. The tribunal determined the transaction would not significantly harm other public interest considerations beyond employment.
Holdings
The Competition Tribunal approved the merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division of Unihold Group Ltd without conditions on 20 September 2001. The tribunal concluded that the merger would not negatively impact competition and could create a more effective competitor to challenge larger market players like Dimension Data.
Remedies
The Competition Tribunal issued a Merger Clearance Certificate on 20 September 2001, approving the merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division of Unihold Group Ltd without conditions. The reasons for this approval are outlined in the document.
Cited Statute
Competition Act, 1998
Judge Name
- F. Fourie
- D.H. Lewis
- P. Maponya
Passage Text
- The areas in which the merging parties' services overlap are Business Applications and Software and IT Infrastructure.
- The Competition Tribunal issued a Merger Clearance Certificate on 20 September 2001 approving the merger between Siemens Business Services (Pty) Ltd and Unihold Business Solutions Division of Unihold Group Ltd without conditions.
- Except for employment, the transaction is unlikely to have a negative impact on any of the other public interest issues. As a result of the merger restructuring will be necessary in the finance, administration and logistics area that could result in up to 40 members of staff being retrenched.