Tribunal gives okay to horseracing merger

Genesis assisted the Competition Commission in assessing an acquisition of a racecourse that involved the two major South African horseracing administrators,- Gold Circle and Phumelela, both of which are also active in the betting market.

The commission's concerns extended to a variety of issues including the concentration of the industry, issues of control and a failing firm defence.

As a result, the merger required a keen understanding of the structure of the South African markets of horseracing administration, betting and media and data rights, which Genesis assisted the commission with.

The Genesis independent economic assessment found that the transaction was likely to bring about a material change in the landscape of the horseracing industry in South Africa, transforming the industry from a duopoly to an industry dominated by a single firm, Phumelela.

The Competition Tribunal conditionally approved the merger.