Clicks Pharmaceutical Wholesale (Pty) Ltd and New United Pharmaceutical Distributors (Pty) Ltd (69/LM/SEP02) [2002] ZACT 71 (13 December 2002)

Clicks Pharmaceutical Wholesale (Pty) Ltd and New United Pharmaceutical Distributors (Pty) Ltd (69/LM/SEP02) [2002] ZACT 71 (13 December 2002)

The Tribunal found that the merger is a vertical transaction with no overlap between the parties in either the wholesale or retail markets. NUPD's market share is not significant in either scheduled or unscheduled pharmaceutical distribution, and Clicks is not dominant in the retail market for lifestyle, beauty, or health products. Barriers to entry are low for unscheduled products, and there is substantial competition in both markets. The relationships between Clicks and pharmacy groups do not confer control or facilitate foreclosure. There are no exclusive supply agreements or public interest concerns. The merger will not result in a substantial lessening of competition and is therefore...

Citation
[2002] ZACT 71
Parties
Applicant: Clicks Pharmaceutical Wholesale (Pty) Ltd; Respondent: New United Pharmaceutical Distributors (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 December 2002
Case Number
69/LM/Sept02
Procedural Posture
Large Merger Review / Merger Clearance Reasons
Outcome
Merger approved unconditionally; no substantial lessening of competition or public interest concerns identified.
Judges
N. Manoim, D. Lewis, U. Bhoola
Legal Topics
Vertical Merger, Market Definition, Dominance Assessment, Public Interest, Pharmacy Regulation
Competition Law Commercial and Corporate Vertical Merger Market Definition Dominance Assessment Public Interest Pharmacy Regulation

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Parties

Clicks Pharmaceutical Wholesale (Pty) Ltd

Applicant

New United Pharmaceutical Distributors (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Reasons

Legal Issues

  1. 1 Whether the merger between Clicks Pharmaceutical Wholesale and New United Pharmaceutical Distributors will substantially lessen competition in any relevant market.
  2. 2 Whether there are any public interest concerns arising from the transaction.
  3. 3 Whether the vertical relationship between the parties could result in foreclosure or anticompetitive effects.

Ratio Decidendi

The Tribunal found that the merger is a vertical transaction with no overlap between the parties in either the wholesale or retail markets. NUPD's market share is not significant in either scheduled or unscheduled pharmaceutical distribution, and Clicks is not dominant in the retail market for lifestyle, beauty, or health products. Barriers to entry are low for unscheduled products, and there is substantial competition in both markets. The relationships between Clicks and pharmacy groups do not confer control or facilitate foreclosure. There are no exclusive supply agreements or public interest concerns. The merger will not result in a substantial lessening of competition and is therefore...

Court Disposition

Merger approved unconditionally; no substantial lessening of competition or public interest concerns identified.

Orders

  • The merger between Clicks Pharmaceutical Wholesale (Pty) Ltd and New United Pharmaceutical Distributors (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the transaction.