Boxmore Plastics (SA) Proprietary Limited v Cinqpet, a division of Astrapak Manufacturing Holdings Proprietary Limited (LM015May15) [2015] ZACT 56 (30 June 2015)

Boxmore Plastics (SA) Proprietary Limited v Cinqpet, a division of Astrapak Manufacturing Holdings Proprietary Limited (LM015May15) [2015] ZACT 56 (30 June 2015)

The Tribunal found that the proposed merger between Boxmore and Cinqpet would not substantially prevent or lessen competition in the relevant market for PET converted beverage bottles in Gauteng. The post-merger market share would be less than 15%, and the merged entity would continue to face competition from other market players such as MPact, Polyoak, and Nampak. The Tribunal agreed with the Commission that there were no concerns regarding input or customer foreclosure, as the merged entity would not have market power to restrict supply or access to PET pre-forms or bottles. Furthermore, the transaction would not negatively impact employment or raise other public interest concerns....

Citation
[2015] ZACT 56
Parties
Applicant: Boxmore Plastics (SA) Proprietary Limited; Respondent: Cinqpet, a division of Astrapak Manufacturing Holdings Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 June 2015
Case Number
LM015May15
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Imraan Valodia, Andiswa Ndoni
Legal Topics
Horizontal Merger, Vertical Merger, Market Share Analysis, Input Foreclosure, Customer Foreclosure
Competition Law Commercial and Corporate Horizontal Merger Vertical Merger Market Share Analysis Input Foreclosure Customer Foreclosure

Case Brief

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Parties

Boxmore Plastics (SA) Proprietary Limited

Applicant

Cinqpet, a division of Astrapak Manufacturing Holdings Proprietary Limited

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger between Boxmore and Cinqpet is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impacts.
  3. 3 Whether the merger gives rise to horizontal or vertical competition concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Boxmore and Cinqpet would not substantially prevent or lessen competition in the relevant market for PET converted beverage bottles in Gauteng. The post-merger market share would be less than 15%, and the merged entity would continue to face competition from other market players such as MPact, Polyoak, and Nampak. The Tribunal agreed with the Commission that there were no concerns regarding input or customer foreclosure, as the merged entity would not have market power to restrict supply or access to PET pre-forms or bottles. Furthermore, the transaction would not negatively impact employment or raise other public interest concerns....

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Boxmore Plastics (SA) Proprietary Limited and Cinqpet, a division of Astrapak Manufacturing Holdings Proprietary Limited, is approved without conditions.