Caxton fails to block M-Net deal

Announcing the decision in the Cape High Court on Friday, Judge Dennis Davis, reading from the judgment prepared by Acting Judge of Appeal Levinson on behalf of the court, said that the argument that the tribunal acted ultra vires is rejected.

"The review is accordingly dismissed with costs," Davies said.

In May the commission referred the merger between Naspers, Electronic Media Network and Supersport International Holdings to the tribunal recommending it be approved without conditions. The transaction will result in Naspers acquiring all of the issued share capital in M-Net and Supersport.

Caxton applied for leave to participate in the merger alleging that it would give rise to a number of competition concerns. Naspers would be able to bundle print and television advertising so as to lower print advertising below cost, Caxton said. Naspers would prevent print rivals from advertising on M-Net

Caxton also said that Naspers would use its increased stake in M-Net to cross subsidise its print operations to the detriment of print rivals and that it would be in a position to increase cross promotions between its print and television interests.

Naspers did not oppose the application to intervene but stated it should be limited to issues of preventing rivals from advertising, and bundling print and TV advertising

In July the tribunal granted Caxton leave to participate in the merger subject to the scope of the intervention being limited to those issues.

Caxton, then applied to the competition appeal court for a review of the decision to limit the scope of its intervention.

That appeal was turned down on Friday.