Bytes Technology Group SA (Pty) Ltd v Nor Stationary Wholesalers (Pty) Ltd Nor Paper (Pty) Ltd (64/LM/May08) [2008] ZACT 60 (28 July 2008)

Bytes Technology Group SA (Pty) Ltd v Nor Stationary Wholesalers (Pty) Ltd Nor Paper (Pty) Ltd (64/LM/May08) [2008] ZACT 60 (28 July 2008)

The Tribunal found that the proposed transaction would not result in a substantial lessening or prevention of competition in the market for copy paper. The post-merger market share of the merged entity would be 16.8%, with Bytes Document Solutions previously holding 14% and NOR Business 2.8%. The increment was deemed insignificant and unlikely to raise competition concerns. Furthermore, there were no public interest issues identified, and the transaction would enable the merged entity to obtain Black Economic Empowerment credentials. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 60
Parties
Applicant: Bytes Technology Group SA (Pty) Ltd; Respondent: Nor Stationary Wholesalers (Pty) Ltd; Respondent: Nor Paper (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 July 2008
Case Number
64/LM/May08
Procedural Posture
Merger Clearance / Merger Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, U Bhoola, N Manoim
Legal Topics
Merger Clearance, Market Share Analysis, Public Interest, Black Economic Empowerment
Competition Law Commercial and Corporate Merger Clearance Market Share Analysis Public Interest Black Economic Empowerment

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Parties

Bytes Technology Group SA (Pty) Ltd

Applicant

Nor Stationary Wholesalers (Pty) Ltd

Respondent

Nor Paper (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening or prevention of competition in the relevant market.
  2. 2 Whether there are any public interest concerns arising from the transaction.
  3. 3 Whether the transaction will enable the merged entity to obtain Black Economic Empowerment credentials.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial lessening or prevention of competition in the market for copy paper. The post-merger market share of the merged entity would be 16.8%, with Bytes Document Solutions previously holding 14% and NOR Business 2.8%. The increment was deemed insignificant and unlikely to raise competition concerns. Furthermore, there were no public interest issues identified, and the transaction would enable the merged entity to obtain Black Economic Empowerment credentials. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Bytes Technology Group SA (Pty) Ltd and Nor Stationary Wholesalers (Pty) Ltd and Nor Paper (Pty) Ltd is approved unconditionally.