Aveng (Africa) Ltd v Dynamic Fluid Control (Pty) Ltd (53/LM/Aug10) [2010] ZACT 81 (17 November 2010)

Aveng (Africa) Ltd v Dynamic Fluid Control (Pty) Ltd (53/LM/Aug10) [2010] ZACT 81 (17 November 2010)

The Tribunal found that although there is a horizontal overlap in the supply of self-operating regulators, the merging parties focus on different customer segments and the market share accretion resulting from the merger is extremely limited. The Tribunal did not find it necessary to define the exact parameters of the relevant product market, as this would not alter the outcome. The merger is unlikely to substantially prevent or lessen competition in any potential relevant market. Furthermore, the merger will not lead to significant vertical integration, and no public interest issues, including employment effects, arise from the transaction. Accordingly, the merger was approved...

Citation
[2010] ZACT 81
Parties
Applicant: Aveng (Africa) Limited; Respondent: Dynamic Fluid Control (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 November 2010
Case Number
53/LM/Aug10
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Public Interest
Competition Law Merger Control Horizontal Overlap Market Definition Public Interest

Case Brief

Summary, issues, holding and outcome

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Parties

Aveng (Africa) Limited

Applicant

Dynamic Fluid Control (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Aveng (Africa) Limited and Dynamic Fluid Control (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap in the supply of self-operating regulators, the merging parties focus on different customer segments and the market share accretion resulting from the merger is extremely limited. The Tribunal did not find it necessary to define the exact parameters of the relevant product market, as this would not alter the outcome. The merger is unlikely to substantially prevent or lessen competition in any potential relevant market. Furthermore, the merger will not lead to significant vertical integration, and no public interest issues, including employment effects, arise from the transaction. Accordingly, the merger was approved...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Aveng (Africa) Limited and Dynamic Fluid Control (Pty) Ltd is approved without conditions.