Bidvest Group Limited v Plumblink SA (Pty) Ltd (LM035Jun15) [2015] ZACT 92 (15 July 2015)

Bidvest Group Limited v Plumblink SA (Pty) Ltd (LM035Jun15) [2015] ZACT 92 (15 July 2015)

The Tribunal found that both Bidvest and Plumblink are active in the market for the supply of plumbing and related products, but their combined post-merger market share would be less than 15%, with minimal accretion. The parties target different customer segments, with Bidvest focusing on electrical contractors and Plumblink on plumbers and end-users. The Competition Commission's investigation concluded that the transaction would not substantially prevent or lessen competition, and the Tribunal agreed. No public interest concerns were identified. Therefore, the Tribunal approved the merger unconditionally.

Citation
[2015] ZACT 92
Parties
Applicant: Bidvest Group Limited; Respondent: Plumblink SA (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 July 2015
Case Number
LM035Jun15
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved unconditionally.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Retail Market Share
Competition Law Merger Control Market Definition Public Interest Retail Market Share

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Parties

Bidvest Group Limited

Applicant

Plumblink SA (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that both Bidvest and Plumblink are active in the market for the supply of plumbing and related products, but their combined post-merger market share would be less than 15%, with minimal accretion. The parties target different customer segments, with Bidvest focusing on electrical contractors and Plumblink on plumbers and end-users. The Competition Commission's investigation concluded that the transaction would not substantially prevent or lessen competition, and the Tribunal agreed. No public interest concerns were identified. Therefore, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Bidvest Group Limited of the entire issued share capital in Plumblink SA (Pty) Ltd is approved without conditions.