Calshelf Investments 152 (Proprietary) Limited and Orley Foods (Proprietary) Limited (108/LM/OCT07) [2007] ZACT 102 (12 December 2007)

Calshelf Investments 152 (Proprietary) Limited and Orley Foods (Proprietary) Limited (108/LM/OCT07) [2007] ZACT 102 (12 December 2007)

The Tribunal found that the products manufactured by the acquiring firms do not overlap or compete with those of Orley Foods, and there is no supply relationship between them. Therefore, the merger does not raise horizontal or vertical competition concerns. The transaction is unlikely to substantially prevent or lessen competition in any market. Furthermore, there are no negative effects on employment and no significant public interest concerns. The merger is unconditionally approved.

Citation
[2007] ZACT 102
Parties
Applicant: Calshelf Investments 152 (Proprietary) Limited; Respondent: Orley Foods (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 December 2007
Case Number
108/LM/OCT07
Procedural Posture
Merger Application / Decision on Approval
Outcome
The proposed merger is unconditionally approved.
Judges
DH Lewis, Y Carrim, M Mokuena
Legal Topics
Merger Control, Public Interest, Horizontal Merger Analysis
Competition Law Commercial and Corporate Merger Control Public Interest Horizontal Merger Analysis

Case Brief

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Parties

Calshelf Investments 152 (Proprietary) Limited

Applicant

Orley Foods (Proprietary) Limited

Respondent

Procedural Posture

Merger Application / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger between Calshelf Investments 152 and Orley Foods 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 the products manufactured by the acquiring firms do not overlap or compete with those of Orley Foods, and there is no supply relationship between them. Therefore, the merger does not raise horizontal or vertical competition concerns. The transaction is unlikely to substantially prevent or lessen competition in any market. Furthermore, there are no negative effects on employment and no significant public interest concerns. The merger is unconditionally approved.

Court Disposition

The proposed merger is unconditionally approved.

Orders

  • The merger between Calshelf Investments 152 (Proprietary) Limited and Orley Foods (Proprietary) Limited is approved without conditions.