Comp Comm - Essential Reading for all interested parties

Sumations tomorrow and then have 60 working days to give their answer.

Just as well it's working days and not racing days in KZN, could take a year lol

The evidence is now complete, closing arguments are made by the opposing counsels tomorrow. The tribunal then consider the matter and write up their decision.

There has been no indication that the tribunal members are in favour of the transaction.

I don't think that RBB (the economists for PHM/THT) have pulled it through for them before the Tribunal and that the damage done by the factual witnesses will stand against them in the final decision.

Price it up bookies ....

5/10 allowed with strict conditions. 15/10 not allowed at all and 10/1 allowed completely as asked for.

Craig Ill have the 15/10 R1000 on loser pays the money to horse care unit, on?

Am I playing bookmaker as well now? HCU will hope it is not approved and get an extra R500.

I doubt it, pretty sure they will be hoping for the R1000 X(

THE Competition Commission on Wednesday, for the first time, entertained possible conditions which could lead to the approval of the horse racing merger in the Western Cape, but ultimately maintained its prohibition of the transaction.

Earlier this year it prohibited the merger whereby Kenilworth Racing and the Thoroughbred Horseracing Trust would acquire the Western Cape business of Gold Circle, arguing that it would lead to a substantial lessening of competition in the markets for horse racing operators and the horse racing betting markets.

The Competition Tribunal on Wednesday heard closing arguments after the merging parties took the commission’s prohibition on review. The merging parties argued the commission did not make out a case that the transaction would substantially lessen competition. It also proposed certain conditions after initially asking for an unconditional approval.

The role of JSE-listed Phumelela Gaming and Leisure in the transaction had been a huge bone of contention for the commission. Phumelela would be responsible for the management of the Western Cape business if the transaction was approved. The commission said it would be like Vodacom managing MTN.

Mike van der Nest SC, appearing for the commission, argued that the philosophy of Phumelela was that one tote operator was the way to go. It would therefor not be in its interest to grow the Kenilworth business.

He said the philosophy would be entrenched through the board of Kenilworth Racing. The trust holds a stake of 35% in Phumelela and the trust will appoint six of the nine directors to the board of Kenilworth Racing.

Alfred Cockrell SC, appearing for Kenilworth and the trust, said he could not understand the anxiety caused by Phumelela as the manager of the business. He also questioned the proposition that the Kenilworth board would not operate independently from Phumelela, saying it implied that the directors would flagrantly breach their fiduciary duties.

Yasmin Carrim, a member of the tribunal, asked how the tribunal would deal with the transaction of they did find that Phumelela was a party to the transaction and had a material influence on the strategic direction of the business.

Mr Cockrell said it could still invite Phumelela to the transaction and sanction it for not filing earlier.

He said it would not change the merger analysis since all the evidence had been put to the tribunal during the public hearings.

so is it swinging back in Phums favour? nae need to wste r325 on a breakfast then ?

I don't think so but then I'm biased..... the bottom line is that this will never go through without conditions which in itself proves we were right... small comfort though

It would seem that Phumelela execs and WC board members are going round town saying they are going to lose the CC case BUT that they will win on appeal ....

Clearly they still haven't learnt that you cant buy everyone's votes!

So far PHM have spent "more than 20 million" And it would seem are happy to spend a whole lot more, that's quite a sum for something they didn't even want!

Reasons for the defeat surfacing from last nights function where the usual ring leaders had a lot to say, are that they failed on the economic debates, not because they blatantly lied under oath and tried to mislead the tribunal at every turn and in the result have cleary not disclosed material terms to their members nor the tribunal!

Despite all this though the members sit complacently on their votes while their leaders do their work!!!

Interestingly I'm not as confident that they won't end up doing the deal with stringent conditions just so they can say they did it!

Whatever the outcome, THEY LOST, but unless members take a stand WE ALL LOSE!

Thanks for update