COMPETITION TRIBUNAL OF SOUTH AFRICA Case No - DOC by HC120807081227

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									                            COMPETITION TRIBUNAL OF SOUTH AFRICA


                                                                                              Case                        No:
                                                                                         33/LM/Apr08

In the matter between:

ALTRON FINANCE (PTY) LTD                                                                 UI I F G N I UI UQ C A


And

Aeromaritime International Management Services                                                           Target Firm


AQ NAP                  :         ,)N I B N I I I UB I Q A A T( A O O A A B I ,)N I B N I I I NE UD UQ C P( N I UE A D
                                  a)rTbiMdnlao bi T(ndnaoaoM M dna
NAID O Q A              :         8002 I Q N J 4
dTn Ta eeM n            :         8002a4

:E E I N D U NA E O Q E I         8002 I AU J 44


                                                Reasons for Decision


Approval

[1]       Me na rp a b Tt Ta i rw da rlrTMda ebdndo arp a rTbiMdnla MdoMdnblMdnllra nhhTa ,8002 Md a a 4dda
         rp a T neMdea MTaa . rna )yrr( rna ndna r TMbnTblb a dr TdnlMdnla ondnt b dra A Tebo ea a )yrr(
          a.nhhTMebdtarp arTndenolMda MllMw

The parties

[2]       IQND A IAOAAU O        ,)”AF UQ A“( T D A )T U P( UQ A Q G N F AT I O Q A FUII UE A N P I UI A I U A G N I UI UQ C T
          TAN A GOIPAQU AUETND OQ ,)”AT I O Q A“( UI UT N D A O I P O I AT UO Q G AN G T I O Q UG E N AAUN D A EIBEUDUAIU OF

          .EG A A Q C N N NG I I UT UNE E JEN


[3]        rnaa)yrr( reabniMTaepnT pMln TeanT aoblrTMda a.rlrTMdabeadMraoMdrTMll nairandraebdtl aepnT pMln T
         yMilboa de erb draa ,)epnT pMlnbdta %00wbrpa na ( rna a )yrr(a rllda ,)epnT pMlnbdta %8.98wbrpa na (
           bi Trraa,)epnT pMlnbdta%697wbrpana (dlnaoMrMnlauTMMha a,)epnT pMlnbdta%.92wbrpana ( MThMTnlMda
          a.)epnT pMlnbdta%499wbrpana(ndnad noMTaa,)epnT pMlnbdta%99.wbrpana(uTMMha


                                                                   1
[4]       . EUDUAIUNEEIB 40 F AF UQ A A E UQ N EG N E E O A nnw gndd t e t                   %90        w    titd    ti da n


1
    See page 52 of the record.
        ing r tIw P iw egi ,)”ta “( i                )yiP( g dIw titIg            ig witd wd aw wegIg i tg atogn
         9nt I t ing t niw i i w nwoitd



[5]      eMiebnbnTb eabdaAMMrp Tdar Tbonandnarp e abdolMn arllb nar opdMlMtb ea a80rlrTMdapneabda ao eeaM a
                                                                                                          2
         . rna)yrr(ndnayMw Tar opdMlMtb eaa,orr ear opdMlMtb eauTMMha bbbr na, bbbr n

[6]      naa,)”Ao r“( rnaa)yrr(rp ahTbbnTrarnTt ralTbabear TMbnTblb a dr TdnlMdnlaondnt b draATebo ea
        r oAanM eadMra oMdrTMlaa.oMbhndrabdoMThMTnr naMdn Tarp alnweaM arp ad hMilboaM aAMMrpar Tbon
        wbrpa nopaa,ndnarllda,)T btpr” d d“( rna a)yrr(r oAabeaiMbdrlraoMdrTMll nairad d T btpra a.ndralTb
        d d T btpra bea oMdrTMll na ira rp a obne era uTMMhaa .M a rp a beeM na epnT a onhbrnla %90lTba pMlnbdta
         a.naoMbhndralber naMdarp a AnaA oMTbl eanaopndt a,)”re enbo“( bbbr na


Description of the transaction

[7]      IN TERMS OF THIS TRANSACTION, ALFIN INTENDS TO INCREASE ITS 50%
         SHAREHOLDING               IN   AIMS TO 100% BY ACQUIRING AN ADDITIONAL 50%
         SHAREHOLDING IN              AIMS. ON COMPLETION OF THE TRANSACTION, AIMS WILL BE A
         WHOLLY OWNED SUBSIDIARY OF ALFIN.


Rationale for the transaction

[8]      T I N Q UT U TO G I NAT N A G N Q A G T UO Q A E A Q O P P O I T I UI I T UN I E T A UE T I A Q E A N A G N I UI UQ C F T

        AN   T .E E I P P AU G A A UQ ’I O I P C I O I P TO I A Q A C N T A N C AT I O Q A Q TANFOI NEGNAANQGN IUTAU
        N Q F I N UC A T A A E   I AF UQ A Q D A QJOUQT TNQTIIN BNTINN AUIE AT AATAOICA TANPAITUNE EIBIUTTND TA
        NE IUTAUQ DE ENITUGUQC GOIPAQUAIUAU DUINGTND TOIAITUGNE AATN BNNQ PIUIENI                     AUIE ,BNNQ EIGGNEEFIA
        UT ,EAAINAOADNIE AE OQN OF TAN IAJOI )N Q F I N UC A T I( UT A A G O I P N T UT O I I .I O I P C AT I O Q A TAN

         .TO NEPAQD AUIE OIAAE BNNQ DUFFUGIAT F


[9]      lra MTb nawbrparlrTMdaiTbdtbdtarp aolb drad d T btpraeMibbe narpnrarp aiMbdrae drMT awneabdblnl
        rp T a pnea i da na Mlla e bllea a ,Me Ta rp a r nTea ,rMw e Ta .ine a ndna obne era iTbdtbdta rp a ah Tle
        d d T btpr ea bdeMle b dra bda r oAa pnea i da T nMo na rMa Me Tebtpra a ,rp T MT a .rTnde Ta rMa r oA
        rp ra MTrp Ta eMibbra rpnra r oAa bea na ebnlla hnTra M a rp a a .rp a iMnTna TMl a wbrpa T hT e drnlMda Md
         .obne erauTMMh eaMe Tnllaol nTbdtaiMebd eeandnanooMTnbdtlrabrawbep earManbehMe aM abr




The parties’ activities

Primary acquiring group


2
    See page 51 of the record for a complete list of firms controlled by Altron.
                                                             2
Alfin

[10]     ALFIN IS A GROUP FINANCE COMPANY AND SERVICE PROVIDER TO THE ALTRON
         GROUP. IT HOLDS FUNDS ON BEHALF OF FELLOW SUBSIDIARIES AND MAKES
         ADVANCES TO FELLOW SUBSIDIARY COMPANIES WITHIN ALTRON GROUP.



[11]     ALFIN CONDUCTS A TREASURY FUNCTION, OVERSEES THE ADMINISTRATION OF
         EMPLOYEE BENEFITS, MANAGES INSURANCE PROGRAMS, CONDUCTS INTERNAL

         AUDITS, EMPLOYS SENIOR GROUP EXECUTIVES, PROVIDES LEGAL SERVICES AND

         TAXATION CONSULTANCY SERVICES AND DOES LIMITED AMOUNT OF COMPANY

         SECRETARIAL WORK.


Altron

[12]     ALTRON IS INVOLVED IN THE TELECOMMUNICATIONS, POWER ELECTRONICS,
         MULTI-MEDIA AND INFORMATION TECHNOLOGY SECTORS.


The primary target firm

AIMS

[13]     THE PARTIES SUBMITTED THAT AIMS WAS FORMED IN 1990 TO PROVIDE CLEARING
         AND FORWARDING SERVICES TO                        ALTRON GROUP OF COMPANIES. AIMS IS
         ACCREDITED TO EFFECT CUSTOMS CLEARING AND, WITHIN THE                                     ALTRON GROUP,
         CLEARS PRODUCTS/COMPONENTS OF AN ELECTRONIC NATURE USED IN THE

         MANUFACTURE             OF     VARIOUS         ELECTRONIC          PRODUCTS           FOR      THE      POWER

         TRANSFORMER AND CABLE INDUSTRIES; FINISHED PRODUCTS FOR THE OFFICE

         AUTOMATION BUSINESSES AND TELECOMMUNICATION CONVERGENCE PRODUCTS.




Competition analysis


[14]     E OI AOCUETUGE ENITUGN I O I P A A E Q O F I N UC A T C AT I O Q A TAAT TAN A N PA I T UNE E I B I UT T N D T

         AA TANIN UE QO AOIUROQT ,AE A INEIAT ,AQD TAAT         AUIE ETAEN UQ %00 E ’AF UQ A BIEUQNEE APAIT FIOI
         AGTUTUTUNE UE AQ OTNIAAP UQ TAN EIBIUTTND TAAT TANIN ,OQ TAN OTANI AAQD ,O I I UE E UO Q G A N T .OTNIAAP

         N PIUIAIU TAICNT I EAAINAOADUQC UQ TAIUIUQC FUII AAE PIUOUQ AE FAI AE TAN AGN OF TAN INICUQC FUIIE

         INAEN UQ QOT INEIAT UQ AQ UQG UE T I A Q E A G T UO Q I UAA AT T A I UB I Q A A G O Q G AI D N E T A T A N T .FUII
                                                                                                                  3
         .IAIENT EAAIN %4 AAE ANEE TAAQ AUIE IN AECN UQ IAIENT ETIIGTIIAIENT EAAIN OI GAAQ                            nw
        intn i w nwoitd tn di dtpgdP id dgw id w nsaniw itwd r gag itd d dgnng t e dn , gnsdi

3
    See page 45 of record.
                                                           3
        9rgititd odI


[15]   rpMMtparp alTbeanT ae Tlonllrabdr tTnr nabdarpnra r oAahTMebn ea T btpra iTM Tbdtae Tebo earMa
       eMopa e Tlonla bdr tTnlMda nM ea dMra Tnbe a MT olMeMT a a ,oMbhndb ea wbrpbda rp a rlrTMda uTMMh
       bdr tTnlMdanM eadMraa rp a MbbbeebMdandnarp ahnTl eaTbtprlraernr narpnrarp ae Tlonl a.oMdo Tde
       r oAawnea MTb naeh oblonllrarMaT dn Taol nTbdta a, dannnblMda.nTbe a TMbarp aoMTT drarTndenolMd
       a.ndna MTwnTnbdtae Tebo ea MTaoMbhndb eawbrpbdarp arlrTMdauTMMh

Public Interest

[16]   There are no public interest issues.

Conclusion

[17]   The merger is approved unconditionally.



________________                                                       14 JULY 2008
D Lewis                                                                DATE

Tribunal Member


U BHOOLA AND M MOKUENA CONCUR IN THE JUDGMENT OF D LEWIS

TRIBUNAL RESEARCHER                :        R KARIGA

FOR THE MERGING PARTIES:           BRINK COHEN AND LE ROUX ATTORNEYS.

FOR THE COMMISSION :               K MAHLAKONA (MERGERS AND
                                   ACQUISITIONS)




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