Blue Falcon 188 (Pty) Ltd v Studio 88 Clothing (Pty) Ltd and Another (72/LM/Jul12) [2012] ZACT 80 (5 September 2012)

Blue Falcon 188 (Pty) Ltd v Studio 88 Clothing (Pty) Ltd and Another (72/LM/Jul12) [2012] ZACT 80 (5 September 2012)

The Tribunal found that there was no overlap in the activities of the merging parties, as the acquiring firm was formed specifically for the transaction and did not supply any products or services. The Commission's investigation confirmed that neither RMB Ventures nor FirstRand Limited had interests in businesses...

Source-derived case information.

Citation
[2012] ZACT 80
Parties
Applicant: Blue Falcon 188 Proprietary Limited; Respondent: Studio 88 Clothing (Pty) Ltd; Respondent: Crystal Way Trade & Invest 1003 CC trading as Side Step; Respondent: Frisbee Trade and Invest 1161 CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 September 2012
Case Number
72/LM/Jul12
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Andreas Wessels, Andiswa Ndoni
Legal Topics
Large Merger Review, Substantial Lessening of Competition, Public Interest, Joint Control, Retail Apparel Market
Competition Law Large Merger Review Substantial Lessening of Competition Public Interest Joint Control Retail Apparel Market

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Summary, issues, holding and outcome

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Parties

Blue Falcon 188 Proprietary Limited

Applicant

Studio 88 Clothing (Pty) Ltd

Respondent

Crystal Way Trade & Invest 1003 CC trading as Side Step

Respondent

Frisbee Trade and Invest 1161 CC

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial lessening or prevention of competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that there was no overlap in the activities of the merging parties, as the acquiring firm was formed specifically for the transaction and did not supply any products or services. The Commission's investigation confirmed that neither RMB Ventures nor FirstRand Limited had interests in businesses overlapping with the target group. The merged entity would continue to face competition from several large retailers in the sport/lifestyle apparel and footwear market, and competitors did not express concern about the transaction. The Tribunal accepted the Commission's conclusion that the merger was unlikely to result in a substantial lessening or prevention of competition....

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Blue Falcon 188 Proprietary Limited and Studio 88 Clothing (Pty) Ltd, Crystal Way Trade & Invest 1003 CC trading as Side Step, and Frisbee Trade and Invest 1161 CC is approved without conditions.