Barloworld Motor (Pty) Ltd and Avis Southern Africa Limited (79/LM/Dec03) [2004] ZACT 11 (8 February 2004)

Barloworld Motor (Pty) Ltd and Avis Southern Africa Limited (79/LM/Dec03) [2004] ZACT 11 (8 February 2004)

The Tribunal found that the overlap between Barloworld Motor (Pty) Ltd and Avis Southern Africa Limited is limited to the secondary market for used vehicles, where both parties operate in different segments. The post-merger market shares are low, and the market remains competitive with numerous other participants. Vertical relationships between the parties existed prior to the merger and do not create incentives for foreclosure. The merger does not raise any public interest concerns. Accordingly, the Tribunal concluded that the merger will not lead to a substantial lessening of competition and approved the transaction unconditionally.

Citation
[2004] ZACT 11
Parties
Applicant: Barloworld Motor (Pty) Ltd; Respondent: Avis Southern Africa Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 February 2004
Case Number
79/LM/Dec03
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger approved unconditionally; no substantial lessening of competition or public interest concerns identified.
Judges
N. Manoim, D. Lewis, T. Orleyn
Legal Topics
Large Merger Review, Market Definition, Horizontal Merger Analysis, Vertical Relationships, Public Interest, Foreclosure
Competition Law Commercial and Corporate Large Merger Review Market Definition Horizontal Merger Analysis Vertical Relationships Public Interest Foreclosure

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 2 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Barloworld Motor (Pty) Ltd

Applicant

Avis Southern Africa Limited

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Whether the proposed merger between Barloworld Motor (Pty) Ltd and Avis Southern Africa Limited will substantially lessen or prevent competition in any relevant market.
  2. 2 Whether there are any public interest concerns that would justify prohibiting or conditioning the merger.

Ratio Decidendi

The Tribunal found that the overlap between Barloworld Motor (Pty) Ltd and Avis Southern Africa Limited is limited to the secondary market for used vehicles, where both parties operate in different segments. The post-merger market shares are low, and the market remains competitive with numerous other participants. Vertical relationships between the parties existed prior to the merger and do not create incentives for foreclosure. The merger does not raise any public interest concerns. Accordingly, the Tribunal concluded that the merger will not lead to a substantial lessening of competition and approved the transaction unconditionally.

Court Disposition

Merger approved unconditionally; no substantial lessening of competition or public interest concerns identified.

Orders

  • The merger between Barloworld Motor (Pty) Ltd and Avis Southern Africa Limited is approved unconditionally.
  • No conditions are imposed on the transaction.