Bongicel (Pty) Ltd v Lusitania Pty Ltd (LM224Jan16) [2016] ZACT 22 (23 March 2016)

Bongicel (Pty) Ltd v Lusitania Pty Ltd (LM224Jan16) [2016] ZACT 22 (23 March 2016)

The Tribunal found that there was no overlap between the activities of Bongicel and Lusitania, as the Royal Bafokeng Trust did not own interests in firms competing with Lusitania in the distribution of frozen or chilled food products. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition in any market. Furthermore, the merging parties assured that there would be no adverse effect on employment and no retrenchments. The Tribunal agreed with the Commission's findings and concluded that the transaction raised no significant public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2016] ZACT 22
Parties
Applicant: Bongicel (Pty) Ltd; Respondent: Lusitania Pty Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 March 2016
Case Number
LM224Jan16
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, F Tregenna
Legal Topics
Merger Control, Public Interest, Market Overlap
Competition Law Merger Control Public Interest Market Overlap

Case Brief

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Parties

Bongicel (Pty) Ltd

Applicant

Lusitania Pty Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of Lusitania by Bongicel is likely to substantially prevent or lessen competition in any market.
  2. 2 Whether the transaction raises any significant public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that there was no overlap between the activities of Bongicel and Lusitania, as the Royal Bafokeng Trust did not own interests in firms competing with Lusitania in the distribution of frozen or chilled food products. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition in any market. Furthermore, the merging parties assured that there would be no adverse effect on employment and no retrenchments. The Tribunal agreed with the Commission's findings and concluded that the transaction raised no significant public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.