South Africa: Competition Tribunal

Case No.: 30/LM/Mar07

In the matter between:


ET Cayman Holdings LTD                                       Acquiring Firm

and

The Emission Technology Business of
Arvin Meritor Inc                                                              Target Firm


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Panel:                              Y Carrim (Presiding Member), N Manoim (Tribunal

Member), and M Mokuena (Tribunal Member)

Heard on:                          25 April 2007
Order delivered on:               25 April 2007
Reasons delivered on:    11May 2007

On 25 April 2007, the Competition Tribunal unconditionally approved the proposed acquisition by ET Cayman Holdings Ltd (“ET Cayman”) of the Emission Technology Business of Arvin Meritor Inc (“The Emissions Business of ARM”).

ET Cayman will acquire all the shares and assets comprising the Emissions Business of ARM.

[3]     

JP Morgan Chase & Co ultimately controls the primary acquiring firm, ET Cayman, via its subsidiary, One Equity Partners,II, L.P (“OEP”), a private equity company.

The proposed transaction provides an opportunity to invest in an area where OEP is presently not active. It provides ARM with an opportunity to concentrate on its core competencies which excludes the emissions business.

Relevant Market

[5]     

JP Morgan is an investment bank which provides a full range of investment banking and commercial banking products and services. ARM emissions business produces car exhaust systems for original equipment manufacturers. It also provides exhaust components and systems to the free aftermarket. The target business of the transaction is the emissions business for OEMs. Post merger ARM will continue to provide the exhaust components systems to the free aftermarket.

There are no job losses or any other significant public interests issues that arise from the transaction.

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