Clidet No 1003 (Pty) Ltd v ICC Mayibuye (Pty) Ltd (58/LM/Sept10) [2010] ZACT 83 (25 November 2010)

Clidet No 1003 (Pty) Ltd v ICC Mayibuye (Pty) Ltd (58/LM/Sept10) [2010] ZACT 83 (25 November 2010)

The Tribunal found that the overlap between the merging parties in both the wholesale and retail grocery markets in Tembisa was insignificant. Savemoor held a 20% market share in retail and 1% in wholesale, while Massmart's shares were 1% in retail and 30% in wholesale, with the latter figure including all Makro, CBW, and Jumbo stores in the area. The low level of market share accretion and the presence of numerous effective competitors indicated that the merger would not result in a substantial lessening or prevention of competition. The vertical relationship between the parties was limited to infrequent, low-value transactions, raising no foreclosure concerns. No significant public...

Citation
[2010] ZACT 83
Parties
Applicant: Clidet No 1003 (Pty) Ltd; Respondent: ICC Mayibuye (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 November 2010
Case Number
58/LM/Sept10
Procedural Posture
Merger Application / Approval
Outcome
Merger unconditionally approved.
Judges
Yasmin Carrim, Medi Mokuena, Andreas Wessels
Legal Topics
Merger Control, Market Share Analysis, Vertical Relationships, Public Interest, Retail Grocery Market
Competition Law Commercial and Corporate Merger Control Market Share Analysis Vertical Relationships Public Interest Retail Grocery Market

Case Brief

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Parties

Clidet No 1003 (Pty) Ltd

Applicant

ICC Mayibuye (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant wholesale and retail grocery markets in Tembisa.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the overlap between the merging parties in both the wholesale and retail grocery markets in Tembisa was insignificant. Savemoor held a 20% market share in retail and 1% in wholesale, while Massmart's shares were 1% in retail and 30% in wholesale, with the latter figure including all Makro, CBW, and Jumbo stores in the area. The low level of market share accretion and the presence of numerous effective competitors indicated that the merger would not result in a substantial lessening or prevention of competition. The vertical relationship between the parties was limited to infrequent, low-value transactions, raising no foreclosure concerns. No significant public...

Court Disposition

Merger unconditionally approved.

Orders

  • The acquisition of ICC Mayibuye (Pty) Ltd t/a Savemoor Cash and Carry by Clidet No 1003 (Pty) Ltd is approved without conditions.