Bidvest Services Holdings (Pty) Ltd v New Frontiers Tours (Pty) Ltd (LM128Nov19) [2020] ZACT 83 (7 February 2020)

Bidvest Services Holdings (Pty) Ltd v New Frontiers Tours (Pty) Ltd (LM128Nov19) [2020] ZACT 83 (7 February 2020)

The Tribunal found that there were no horizontal or vertical overlaps between the activities of Bidvest Services Holdings (Pty) Ltd and New Frontiers Tours (Pty) Ltd, as the former operates in outbound travel services and the latter in inbound travel services. Both demand-side and supply-side substitutability were deemed unlikely due to the large number of market participants and the distinct nature of the services. The Tribunal accepted the Commission's finding that the merger would not substantially lessen or prevent competition. Regarding public interest, the Tribunal was satisfied that prior retrenchments were not merger specific and that no further retrenchments would result from the...

Citation
[2020] ZACT 83
Parties
Applicant: Bidvest Services Holdings (Pty) Ltd; Respondent: New Frontiers Tours (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 February 2020
Case Number
LM128Nov19
Procedural Posture
Large Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
M Mazwai, Y Carrim, AW Wessels
Legal Topics
Large Merger, Market Definition, Horizontal Overlap, Vertical Overlap, Public Interest, Retrenchment Investigation
Competition Law Large Merger Market Definition Horizontal Overlap Vertical Overlap Public Interest Retrenchment Investigation

Case Brief

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Parties

Bidvest Services Holdings (Pty) Ltd

Applicant

New Frontiers Tours (Pty) Ltd

Respondent

Procedural Posture

Large Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Bidvest Services Holdings (Pty) Ltd and New Frontiers Tours (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including retrenchments.

Ratio Decidendi

The Tribunal found that there were no horizontal or vertical overlaps between the activities of Bidvest Services Holdings (Pty) Ltd and New Frontiers Tours (Pty) Ltd, as the former operates in outbound travel services and the latter in inbound travel services. Both demand-side and supply-side substitutability were deemed unlikely due to the large number of market participants and the distinct nature of the services. The Tribunal accepted the Commission's finding that the merger would not substantially lessen or prevent competition. Regarding public interest, the Tribunal was satisfied that prior retrenchments were not merger specific and that no further retrenchments would result from the...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Bidvest Services Holdings (Pty) Ltd and New Frontiers Tours (Pty) Ltd is approved without conditions.