| Fri 6 May 2011, 11:43 | | THEE - Outcome of Competition Tribunal Hearings |
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JSE
THEE
THEE - Outcome of Competition Tribunal Hearings
OUTCOME OF COMPETITION TRIBUNAL HEARINGS
(Following is a guideline for journalists. The information can be used but
please do not quote Nandi Mokoena or the Tribunal)
1. Merger between JSE Ltd Limited and Momentum Managed Account Platform
(MAP) Holdings (Pty) Ltd and part of the Firstrand Alternative Asset
Management business
On 5 May the Competition Tribunal approved, with conditions, the large merger
of the JSE with MAP Holdings and a part of the Firstrand Alternative
Investment Management (FRAIM) business. The Tribunal heard the merger
application on Wednesday, 4 May.
Background
The JSE is licensed as an exchange and offers multiple platforms for the
listing and trading of various securities, including shares, bonds and
derivatives. On the other hand MAP Holdings, through its subsidiary Momentum
Managed Account Platform (Pty) Ltd or MOMMAP, provides a safer way of
investment into hedge funds through continuous and regular monitoring of
compliance of the hedge fund manager to the mandates given to him.
During the Commission`s assessment of the proposed merger some interested
parties raised concerns, amongst other things, that the JSE`s sole control
over the collection and dissemination of exchange data could negatively
impact any managed account platform looking to enter the market after the
merger. All such platforms would have to rely on their competitor, the JSE,
for exchange data and would be required to submit data to it.
As a result of these and other concerns the Commission recommended, and the
merging parties did not dispute, that the Competition Tribunal approve the
merger on condition that information used or disseminated by any MAP
competitor be independently audited, that the JSE is obliged to supply market
data on non-discriminatory terms to MAP competitors, that the JSE is
prohibited from listing MAP based hedge fund products and that the JSE is
obliged, for a period of time, to keep the existing MAP rules on acceptable
counterparties to derivative contracts in place.
2. Large merger between Hosken Consolidated Investments Limited and KWV
Holdings Limited
On 3 May, the Tribunal unconditionally approved the large merger between
Hosken and KWV.
Background
In this proposed merger Hosken, which is a diversified investment company,
intends to increase its interest in KWV Holdings. KWV manufactures wine,
brandy and spirits in South Africa.
The Commission assessed this merger and found that it was unlikely to
substantially lessen competition in the market. It therefore recommended that
the Tribunal approve this merger without conditions.
Issued by:
Nandi Mokoena
PR Consultant: Competition Tribunal
Cell: 082 399 1328
E-mail: NandisileM@live.co.za
On Behalf of:
Lerato Motaung
Registrar
The Competition Tribunal
Tel: (012) 394 3355
Cell: 082 556 3221
E-mail: LeratoM@comptrib.co.za
Date: 06/05/2011 11:43:53 Produced by the JSE SENS Department.
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