Bidvest Group Ltd and Viamax (Pty) Ltd (65/LM/Jun07) [2007] ZACT 67 (18 September 2007)

Bidvest Group Ltd and Viamax (Pty) Ltd (65/LM/Jun07) [2007] ZACT 67 (18 September 2007)

The Tribunal found that Viamax had functioned primarily as an in-house service provider to Transnet, with 97% of its business dedicated to Transnet and only 3% to municipalities. As such, Viamax was not a significant competitor in the open market prior to the transaction. The merged entity would hold a 12% market share, which is less than several other competitors in the national fleet management services market. The Tribunal concluded that the merger would not substantially prevent or lessen competition; instead, it would likely enhance competition by introducing a stronger competitor into the market. No significant public interest issues were identified, and the merger was approved.

Citation
[2007] ZACT 67
Parties
Applicant: Bidvest Group Ltd; Respondent: Viamax (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 September 2007
Case Number
65/LM/Jun07
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Fleet Management Services, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Fleet Management Services Market Share Analysis

Case Brief

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Parties

Bidvest Group Ltd

Applicant

Viamax (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Bidvest Group Ltd and Viamax (Pty) Ltd would substantially prevent or lessen competition in the national fleet management services market.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that Viamax had functioned primarily as an in-house service provider to Transnet, with 97% of its business dedicated to Transnet and only 3% to municipalities. As such, Viamax was not a significant competitor in the open market prior to the transaction. The merged entity would hold a 12% market share, which is less than several other competitors in the national fleet management services market. The Tribunal concluded that the merger would not substantially prevent or lessen competition; instead, it would likely enhance competition by introducing a stronger competitor into the market. No significant public interest issues were identified, and the merger was approved.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Bidvest Group Ltd and Viamax (Pty) Ltd is approved.
  • No conditions are attached to the approval.