Phodiclinics’ Acquisition of New Protector: Increasing Concentration?

Author :

Eulalie Metton; John Luiz

Pages :

2

Product Type :

Supplements the (A) case

Reference # :

WBS-2010-14b

Teaching Note :

Epilogue

Institute:

Wits Business School

Setting:

South Africa

Year:

Keywords:

Economics, competition

Summary/Abstract:

Despite the fact that the summary of the Tribunal’s deliberations, with non-confidential information only, ran to some 63 pages, its decision was straightforward. The Tribunal considered that New Protector was a failing firm – “or more precisely, a failed firm, within the meaning of the Competition Act 1998” – at the time of the merger transaction. It considered further that the failing firm consideration outweighed any potential loss to competition that may arise as a result of this transaction.