Barloworld Logistics Africa (Pty) Ltd v KLL Group (Pty) Ltd (LM146Oct15) [2016] ZACT 1 (20 January 2016)

Barloworld Logistics Africa (Pty) Ltd v KLL Group (Pty) Ltd (LM146Oct15) [2016] ZACT 1 (20 January 2016)

The Tribunal found that there was no horizontal overlap between the merging parties, as Barloworld Logistics Africa was not engaged in temperature-controlled warehousing and distribution services in South Africa prior to the transaction. The vertical relationship between the parties was limited, with Barloworld Logistics Africa subcontracting less than 1% of KLL's annual turnover. The Commission investigated concerns about market dominance in pie distribution and found that KLL's relationship with Foodcorp was not exclusive, and other competitors were present in the market. The Tribunal concluded that the merger would not substantially prevent or lessen competition and that there were no...

Citation
[2016] ZACT 1
Parties
Applicant: Barloworld Logistics Africa (Pty) Ltd; Respondent: KLL Group (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 January 2016
Case Number
LM146Oct15
Procedural Posture
Merger Approval / Decision on Unconditional Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Mondo Mazwai, Fiona Tregenna
Legal Topics
Merger Control, Vertical Relationships, Market Dominance, Public Interest, Foreclosure Concerns
Competition Law Merger Control Vertical Relationships Market Dominance Public Interest Foreclosure Concerns

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2
Sign in to unlock

Parties

Barloworld Logistics Africa (Pty) Ltd

Applicant

KLL Group (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Decision on Unconditional Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in any market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.
  3. 3 Whether there is a horizontal or vertical overlap between the activities of the merging parties.

Ratio Decidendi

The Tribunal found that there was no horizontal overlap between the merging parties, as Barloworld Logistics Africa was not engaged in temperature-controlled warehousing and distribution services in South Africa prior to the transaction. The vertical relationship between the parties was limited, with Barloworld Logistics Africa subcontracting less than 1% of KLL's annual turnover. The Commission investigated concerns about market dominance in pie distribution and found that KLL's relationship with Foodcorp was not exclusive, and other competitors were present in the market. The Tribunal concluded that the merger would not substantially prevent or lessen competition and that there were no...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The acquisition by Barloworld Logistics Africa (Pty) Ltd of KLL Group (Pty) Ltd is approved without conditions.