Afrique Pet Food (Pty) Ltd ("Afrique") v Part of the Dry Pet Food Business of Martin and Martin (Pty) Ltd (LM171Dec20) [2021] ZACT 18 (24 March 2021)

Afrique Pet Food (Pty) Ltd ("Afrique") v Part of the Dry Pet Food Business of Martin and Martin (Pty) Ltd (LM171Dec20) [2021] ZACT 18 (24 March 2021)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the national market for the supply of dry dog food, as the post-merger market shares remained below critical thresholds and effective competition would persist from other market participants. The restraint of trade period was reduced from five to three years to ensure reasonableness and avoid undue barriers to competition. Employment concerns arising from the retrenchment of 35 vulnerable employees were addressed by imposing conditions requiring core-skills training at accredited institutions, financial support for transport, and preferential re-employment opportunities for affected...

Citation
[2021] ZACT 18
Parties
Applicant: Afrique Pet Food (Pty) Ltd; Respondent: Part of the Dry Pet Food Business of Martin & Martin (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 March 2021
Case Number
LM171Dec20
Procedural Posture
Large Merger Application / Merger Approval With Conditions
Outcome
Merger conditionally approved subject to employment and restraint of trade conditions.
Judges
E Daniels, Y Carrim, H Cheadle
Legal Topics
Large Merger Review, Restraint of Trade, Employment Conditions, Market Share Analysis, Skills Training, Retrenchment Protection
Competition Law Labour Law Large Merger Review Restraint of Trade Employment Conditions Market Share Analysis Skills Training Retrenchment Protection

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Parties

Afrique Pet Food (Pty) Ltd

Applicant

Part of the Dry Pet Food Business of Martin & Martin (Pty) Ltd

Respondent

Procedural Posture

Large Merger Application / Merger Approval With Conditions

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the restraint of trade period agreed between the merger parties is reasonable and justifiable.
  3. 3 Whether the merger gives rise to employment concerns and how these should be addressed.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the national market for the supply of dry dog food, as the post-merger market shares remained below critical thresholds and effective competition would persist from other market participants. The restraint of trade period was reduced from five to three years to ensure reasonableness and avoid undue barriers to competition. Employment concerns arising from the retrenchment of 35 vulnerable employees were addressed by imposing conditions requiring core-skills training at accredited institutions, financial support for transport, and preferential re-employment opportunities for affected...

Court Disposition

Merger conditionally approved subject to employment and restraint of trade conditions.

Orders

  • The merger between Afrique Pet Food (Pty) Ltd and Part of the Dry Pet Food Business of Martin & Martin (Pty) Ltd is approved subject to the conditions set out in Annexure A.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).