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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 The information can be used but please do not quote Nandi Mokoena or the Tribunal) 1.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 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
