| Mon 4 Oct 2010, 13:00 | | THEE - Notice of upcoming Competition Tribunal Hearings |
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JSE
THEE
THEE - Notice of upcoming Competition Tribunal Hearings
NOTICE OF UPCOMING COMPETITION TRIBUNAL HEARINGS
(Following is a guideline for journalists. The information can be used but
please do not quote Nandi Mokoena or the Tribunal)
CASE(S) 1. Proposed large merger between
Metropolitan Holdings Ltd and Momentum
Group Ltd
2. Proposed large merger between
Fountainhead Property Trust and FHP
Managers, in respect of the Constantia
Valley Sale Property
DATE Wednesday, 06 October 2010
TIME 10H00
PLACE The dti Campus
77 Meintjies Street
Mulayo Building, (Block C)
Sunnyside, Pretoria
Tel: +27 (0) 12 394 3300
Fax: +27 (0) 12 394 0169
Website: http://www.comptrib.co.za
1. Proposed large merger between Metropolitan Holdings Ltd and Momentum
Group Ltd
Metropolitan intends to acquire 100% of the issued share capital of Momentum
and has applied to the competition authorities for approval of this merger.
The transaction will affect the long term insurance, medical insurance,
retirement fund administration, asset management and property investment
markets.
The proposed transaction has a significant public interest component given
that a large number of jobs may be made redundant as a result of the merger,
due to the duplication of services. The majority of the employees of the
merging parties are represented by employee representatives. NEHAWU represents
approximately 6% of the employees of Momentum.
The merging parties however have made certain undertakings in an attempt to
lessen the negative effect of the transaction on employment. The Competition
Commission, after considering the matter, has recommended to the Tribunal that
the merger be approved subject to employment related conditions.
The Tribunal was not satisfied with the limited employment related information
submitted by the merging parties to the Commission and has, in a prehearing of
15 September 2010, requested a substantial amount of additional information
relating to potential employment effects from the merging parties. The
anticipated employment effects and proposed conditions will be further
addressed at the hearing.
The Tribunal has previously approved mergers subject to conditions aimed at
reducing their negative effect on employment, such as skills training or
placing a moratorium on the number of retrenchments. Examples include (1) the
Tiger Brands / Ashton Canning merger of 2005, where the transaction was
expected to result in the retrenchment of about 45 permanent employees and
about 1 000 fewer seasonal workers being contracted; and (2) the Lonmin /
Southern Platinum merger of 2005 in which the transaction was expected to
result in a maximum of 400 job losses.
The Tribunal will hear the Metropolitan / Momentum matter on Wednesday, with
submissions expected from the Commission, the merging parties and NEHAWU.
2. Proposed large merger between Fountainhead Property Trust and FHP
Managers, in respect of the Constantia Valley Sale Property
In terms of the sale agreement, Fountainhead intends to acquire from FHP
Managers its undivided share in the sectional title scheme known as Constantia
Valley, which is a property categorised as A-grade office space in Constantia
Kloof, Roodepoort, Gauteng Province. Constantia Trust will own the remaining
share in section 4 of Constantia Valley and its ownership remains unchanged by
the transaction. FHP Managers, which currently manages the property as asset
manager, will terminate its asset management and Fountainhead Property Trust
Management Limited will manage the asset for Fountainhead.
The Commission has recommended that the Tribunal approve this merger without
conditions. The Tribunal`s hearing into this merger will also take place on
Wednesday.
Issued By:
Nandi Mokoena
PR Consultant: Competition Tribunal
Cell: +27 (0) 82 399 1328
E-mail: NandisileM@live.co.za
On Behalf Of:
Lerato Motaung
Registrar: Competition Tribunal
Tel: (012) 394 3355
Cell: +27 (0) 82 556 3221
E-Mail: LeratoM@comptrib.co.za
Date: 04/10/2010 13:00:01 Produced by the JSE SENS Department.
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