Genesis was jointly retained by ENSafrica and Webber Wentzel to provide an expert economic assessment of the competitive effects on a merger between two large credit bureaux, Experian and Compuscan.
In its assessment, the project team conducted a market definition exercise, analysed market shares, and evaluated potential competition concerns in areas of overlap.
The structure of the credit bureaux industry is complex, in the sense that customer segments can be distinct even when the fundamental services underpinning these are the same. Assessing the relevant markets thus required careful consideration, nuance and rigour.
The assessment of competitive effects in areas of overlap enabled Genesis to identify potential concerns around merger-specific market impacts. Genesis provided technical assistance to the legal team in drafting its competitiveness report, as well as in developing and structuring responses to concerns raised by the Competition Commission and other industry participants during the commission’s merger investigation.
The merger was ultimately approved subject to conditions stipulated by the commission. IOL News: Experian SA and the Credit Services Holdings merger approved.