8115222 Canada Inc v Viterra Inc (48/LM/APR12) [2012] ZACT 53 (11 July 2012)

8115222 Canada Inc v Viterra Inc (48/LM/APR12) [2012] ZACT 53 (11 July 2012)

The Tribunal found that the proposed merger between 8115222 Canada Inc. and Viterra Inc. would not substantially prevent or lessen competition in the market for the trading of wheat in South Africa. The combined post-merger market share of the parties would be below 5%, and significant competitors would remain active in the market. No customers raised concerns, and the Commission's investigation confirmed the absence of anti-competitive effects. Furthermore, the merger would not result in any adverse public interest effects, particularly regarding employment, as no retrenchments were anticipated. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2012] ZACT 53
Parties
Applicant: 8115222 Canada Inc.; Respondent: Viterra Inc.
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 July 2012
Case Number
48/LM/APR12
Procedural Posture
Large Merger Application / Approval and Reasons
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Takalani Madima, Medi Mokuena
Legal Topics
Large Merger Review, Horizontal Overlap, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Large Merger Review Horizontal Overlap Market Definition Public Interest Market Share Analysis

Case Brief

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Parties

8115222 Canada Inc.

Applicant

Viterra Inc.

Respondent

Procedural Posture

Large Merger Application / Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger between 8115222 Canada Inc. and Viterra Inc. is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed merger between 8115222 Canada Inc. and Viterra Inc. would not substantially prevent or lessen competition in the market for the trading of wheat in South Africa. The combined post-merger market share of the parties would be below 5%, and significant competitors would remain active in the market. No customers raised concerns, and the Commission's investigation confirmed the absence of anti-competitive effects. Furthermore, the merger would not result in any adverse public interest effects, particularly regarding employment, as no retrenchments were anticipated. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between 8115222 Canada Inc. and Viterra Inc. is approved without conditions.