Barloworld Investments (Pty) Ltd v NMI DSM South Motors (Pty) Ltd (31/LM/Apr08) [2008] ZACT 65; [2008] 2 CPLR 233 (CT) (13 August 2008)

Barloworld Investments (Pty) Ltd v NMI DSM South Motors (Pty) Ltd (31/LM/Apr08) [2008] ZACT 65; [2008] 2 CPLR 233 (CT) (13 August 2008)

The Tribunal found that the proposed merger does not result in a substantial prevention or lessening of competition in any relevant market. The transaction is essentially a technical re-arrangement of shareholding between Barloworld Investments and NH Partnership, with no increase in Barloworld's economic interest. Market shares post-merger remain low, and there is sufficient competition from other dealerships. Vertical relationships between the parties are minor and do not create foreclosure risks. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 65
Parties
Applicant: Barloworld Investments (Pty) Ltd; Respondent: NMI DSM South Motors (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 August 2008
Case Number
31/LM/Apr08
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Market Definition, Vertical Relationships, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Vertical Relationships Public Interest Market Share Analysis

Case Brief

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Parties

Barloworld Investments (Pty) Ltd

Applicant

NMI DSM South Motors (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Does the proposed merger between Barloworld Investments and NMI DSM South Motors substantially prevent or lessen competition in the relevant markets?
  2. 2 Are there any vertical foreclosure concerns arising from the transaction?
  3. 3 Are there any public interest issues implicated by the merger?

Ratio Decidendi

The Tribunal found that the proposed merger does not result in a substantial prevention or lessening of competition in any relevant market. The transaction is essentially a technical re-arrangement of shareholding between Barloworld Investments and NH Partnership, with no increase in Barloworld's economic interest. Market shares post-merger remain low, and there is sufficient competition from other dealerships. Vertical relationships between the parties are minor and do not create foreclosure risks. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Barloworld Investments (Pty) Ltd and NMI DSM South Motors (Pty) Ltd is approved without conditions.