A.P Moller-Maersk A/S v Senator International (LM135Dec21) [2022] ZACT 9 (15 March 2022)

A.P Moller-Maersk A/S v Senator International (LM135Dec21) [2022] ZACT 9 (15 March 2022)

The Tribunal found that the proposed merger between A.P. Moller – Maersk A/S and Senator International would not result in a substantial prevention or lessening of competition in any relevant market. The merged entity's market share in air freight forwarding is below 10%, and significant competitors remain active in South Africa. Vertical concerns regarding input and customer foreclosure were dismissed due to the limited market share and volumes involved. The Tribunal also determined that there were no adverse public interest effects, as there would be no retrenchments, no negative impact on employment, and the transaction has only a limited nexus to South Africa. Accordingly, the...

Citation
[2022] ZACT 9
Parties
Applicant: A.P. Moller – Maersk A/S; Respondent: Senator International; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 March 2022
Case Number
LM135Dec21
Procedural Posture
Large Merger Review / Decision on Merger Approval
Outcome
Merger unconditionally approved.
Judges
Andreas Wessels, Yasmin Carrim, Liberty Mncube
Legal Topics
Large Merger Review, Horizontal Overlap, Vertical Overlap, Input Foreclosure, Customer Foreclosure, Public Interest Assessment
Competition Law Commercial and Corporate Large Merger Review Horizontal Overlap Vertical Overlap Input Foreclosure Customer Foreclosure Public Interest Assessment

Case Brief

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Parties

A.P. Moller – Maersk A/S

Applicant

Senator International

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Decision on Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between A.P. Moller – Maersk A/S and Senator International is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns under South African competition law.

Ratio Decidendi

The Tribunal found that the proposed merger between A.P. Moller – Maersk A/S and Senator International would not result in a substantial prevention or lessening of competition in any relevant market. The merged entity's market share in air freight forwarding is below 10%, and significant competitors remain active in South Africa. Vertical concerns regarding input and customer foreclosure were dismissed due to the limited market share and volumes involved. The Tribunal also determined that there were no adverse public interest effects, as there would be no retrenchments, no negative impact on employment, and the transaction has only a limited nexus to South Africa. Accordingly, the...

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between A.P. Moller – Maersk A/S and Senator International is approved without conditions.