Brandcorp (Pty) Ltd v Allied Putziger (Pty) Ltd and Others (39/LM/Apr08) [2008] ZACT 44 (17 June 2008)

Brandcorp (Pty) Ltd v Allied Putziger (Pty) Ltd and Others (39/LM/Apr08) [2008] ZACT 44 (17 June 2008)

The Tribunal found that the merging parties operate in broadly overlapping markets for the wholesale and distribution of engineering and industrial products, but their customer bases and product ranges differ significantly. Market share analysis revealed that the combined entity would hold a modest share in both...

Source-derived case information.

Citation
[2008] ZACT 44
Parties
Applicant: Brandcorp (Pty) Ltd; Respondent: Allied Putziger (Pty) Ltd; Respondent: F&H Machine Tools (Pty) Ltd; Respondent: TQ&A Properties (Pty) Ltd; Respondent: Bombshop Precinct Property Holding Company (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 June 2008
Case Number
39/LM/Apr08
Procedural Posture
Merger Application / Decision on Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationships, Market Share Analysis, Public Interest
Competition Law Merger Control Horizontal Overlap Vertical Relationships Market Share Analysis Public Interest

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Summary, issues, holding and outcome

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Parties

Brandcorp (Pty) Ltd

Applicant

Allied Putziger (Pty) Ltd

Respondent

F&H Machine Tools (Pty) Ltd

Respondent

TQ&A Properties (Pty) Ltd

Respondent

Bombshop Precinct Property Holding Company (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant product markets.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the merging parties operate in broadly overlapping markets for the wholesale and distribution of engineering and industrial products, but their customer bases and product ranges differ significantly. Market share analysis revealed that the combined entity would hold a modest share in both broad and narrowly defined product markets, with no substantial increase in market concentration. The vertical relationship regarding Mitutoyo products was deemed non-problematic due to the non-exclusive nature of agency agreements and the presence of other distributors. No significant public interest concerns were identified. Accordingly, the Tribunal concluded that the merger is...

Court Disposition

Merger approved without conditions.

Orders

  • The acquisition by Brandcorp (Pty) Ltd of the businesses conducted by Allied Putziger (Pty) Ltd, F&H Machine Tools (Pty) Ltd, and the respective properties and property letting businesses owned by TQ&A Properties (Pty) Ltd and Bombshop Precinct Property Holding Company (Pty) Ltd is approved unconditionally.