Bidvest Group Ltd and Island View Storage Ltd (17/LM/Dec99) [1999] ZACT 4 (4 December 1999)

Bidvest Group Ltd and Island View Storage Ltd (17/LM/Dec99) [1999] ZACT 4 (4 December 1999)

The Tribunal found that the relevant product market was bulk liquid storage facilities, with geographic markets defined narrowly by metropolitan area. The merger resulted in an increase in concentration only in the Durban market, where the HHI rose by approximately 120 points to a post-merger level of about 4,075. Although this increase in a highly concentrated market could be concerning under international guidelines, the Tribunal concluded that mitigating factors—such as the limited scope of the increase (only 30% of IVS's business), the countervailing power of large customers like Sasol, and the absence of objections from customers and unions—meant that the merger was unlikely to...

Citation
[1999] ZACT 4
Parties
Applicant: The Bidvest Group Ltd; Respondent: Island View Storage Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 December 1999
Case Number
17/LM/Dec99
Procedural Posture
Large Merger Review / Merger Clearance
Outcome
Merger approved without conditions.
Judges
D.H. Lewis, N.M. Manoim, P.E. Maponya
Legal Topics
Merger Control, Market Definition, Horizontal Merger Guidelines, Public Interest Considerations
Competition Law Commercial and Corporate Merger Control Market Definition Horizontal Merger Guidelines Public Interest Considerations

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 3 Authorities cited 2 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

The Bidvest Group Ltd

Applicant

Island View Storage Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Clearance

Legal Issues

  1. 1 Whether the merger is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the merger can be justified on substantial public interest grounds as set out in section 16(3) of the Competition Act.

Ratio Decidendi

The Tribunal found that the relevant product market was bulk liquid storage facilities, with geographic markets defined narrowly by metropolitan area. The merger resulted in an increase in concentration only in the Durban market, where the HHI rose by approximately 120 points to a post-merger level of about 4,075. Although this increase in a highly concentrated market could be concerning under international guidelines, the Tribunal concluded that mitigating factors—such as the limited scope of the increase (only 30% of IVS's business), the countervailing power of large customers like Sasol, and the absence of objections from customers and unions—meant that the merger was unlikely to...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between The Bidvest Group Ltd and Island View Storage Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.