Afgri Operations Ltd v Pride Milling Company (Pty) Ltd (51/LM/Jul11) [2012] ZACT 16; [2012] 1 CPLR 152 (CT) (16 January 2012)

Afgri Operations Ltd v Pride Milling Company (Pty) Ltd (51/LM/Jul11) [2012] ZACT 16; [2012] 1 CPLR 152 (CT) (16 January 2012)

The Tribunal found that the proposed merger would result in highly concentrated markets in the retail of grocery and liquor in Nongoma and the wholesale of grocery and retail of liquor in Matatiele, leading to a substantial lessening or prevention of competition. The divestiture conditions, requiring the sale of the retail and liquor businesses in Nongoma and the wholesale and liquor businesses in Matatiele to independent third parties, were agreed upon by the merging parties and the Commission. The Tribunal concluded that these conditions were adequate to remedy the anti-competitive effects identified. No significant public interest concerns, particularly regarding employment, were...

Citation
[2012] ZACT 16
Parties
Applicant: Mystic Blue Trading 62 (Pty) Ltd; Respondent: The Rhino Group
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 January 2012
Case Number
35/LM/Apr11
Procedural Posture
Merger Application / Approval With Conditions
Outcome
Merger approved subject to divestiture conditions.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Divestiture Conditions, Market Definition, Public Interest, Market Concentration
Competition Law Merger Control Divestiture Conditions Market Definition Public Interest Market Concentration

Case Brief

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Parties

Mystic Blue Trading 62 (Pty) Ltd

Applicant

The Rhino Group

Respondent

Procedural Posture

Merger Application / Approval With Conditions

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial lessening or prevention of competition in the affected markets.
  2. 2 Whether the divestiture conditions proposed are sufficient to remedy any anti-competitive effects arising from the merger.
  3. 3 Whether the transaction raises any significant public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that the proposed merger would result in highly concentrated markets in the retail of grocery and liquor in Nongoma and the wholesale of grocery and retail of liquor in Matatiele, leading to a substantial lessening or prevention of competition. The divestiture conditions, requiring the sale of the retail and liquor businesses in Nongoma and the wholesale and liquor businesses in Matatiele to independent third parties, were agreed upon by the merging parties and the Commission. The Tribunal concluded that these conditions were adequate to remedy the anti-competitive effects identified. No significant public interest concerns, particularly regarding employment, were...

Court Disposition

Merger approved subject to divestiture conditions.

Orders

  • The acquisition by Mystic Blue Trading 62 (Pty) Ltd of the Rhino Group is approved subject to the condition that the merging parties divest the retail and liquor businesses of the Rhino Group in Nongoma, Kwazulu Natal Province, and the wholesale and liquor businesses of the Rhino Group in Matatiele, Eastern Cape...
  • A copy of the divestiture conditions is attached as Annexure 'A'.