Bubble Pac (Pty) Ltd and Competition Commission; Sealed Air Africa (Pty) Ltd and The Competition Commission of South Africa [2000] ZACT 30 (11 July 2000)

Bubble Pac (Pty) Ltd and Competition Commission; Sealed Air Africa (Pty) Ltd and The Competition Commission of South Africa [2000] ZACT 30 (11 July 2000)

The Tribunal held that section 14(1) of the Competition Act requires any extension certificate to be issued within thirty days of the merger notice. The second and third extension certificates were issued after this period and were therefore invalid. As a result, the prohibition of the merger was issued at a time when no valid extension was in force, rendering the prohibition a nullity. Consequently, the merger is deemed to have been approved in terms of section 14(2), and the Commission is directed to issue a clearance certificate to the parties.

Citation
[2000] ZACT 30
Parties
Applicant: Bubble Pac (Pty) Ltd; Applicant: Sealed Air Africa (Pty) Ltd; Respondent: The Competition Commission of South Africa
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 July 2000
Case Number
63/AM/May00; 64/AM/May00
Procedural Posture
Review Application / Request for Consideration of Intermediate Merger Prohibition
Outcome
The Tribunal found the Commission's prohibition of the merger invalid and deemed the merger approved.
Judges
D.H. Lewis, N.M. Manoim, D.R. Terblanche
Legal Topics
Intermediate Merger, Extension Certificate, Ultra Vires, Deemed Approval
Competition Law Commercial and Corporate Intermediate Merger Extension Certificate Ultra Vires Deemed Approval

Case Brief

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Parties

Bubble Pac (Pty) Ltd

Applicant

Sealed Air Africa (Pty) Ltd

Applicant

The Competition Commission of South Africa

Respondent

Procedural Posture

Review Application / Request for Consideration of Intermediate Merger Prohibition

Legal Issues

  1. 1 Whether the Competition Commission's prohibition of the intermediate merger was issued within the statutory time period allowed by section 14(1) of the Competition Act.
  2. 2 Whether multiple extension certificates issued by the Commission were valid under section 14(1)(a) of the Act.
  3. 3 Whether the merger is deemed to have been approved in terms of section 14(2) of the Act.

Ratio Decidendi

The Tribunal held that section 14(1) of the Competition Act requires any extension certificate to be issued within thirty days of the merger notice. The second and third extension certificates were issued after this period and were therefore invalid. As a result, the prohibition of the merger was issued at a time when no valid extension was in force, rendering the prohibition a nullity. Consequently, the merger is deemed to have been approved in terms of section 14(2), and the Commission is directed to issue a clearance certificate to the parties.

Court Disposition

The Tribunal found the Commission's prohibition of the merger invalid and deemed the merger approved.

Orders

  • The Competition Commission is directed to issue a clearance certificate to the parties.
  • The Commission must otherwise comply with Rule 33(2) of the Commission Rules.