Clidet No 851 (Pty) Ltd v Sunshine Cash and Carry CC (02/LM/Jan09) [2009] ZACT 57; [2009] 2 CPLR 394 (CT) (18 September 2009)

Clidet No 851 (Pty) Ltd v Sunshine Cash and Carry CC (02/LM/Jan09) [2009] ZACT 57; [2009] 2 CPLR 394 (CT) (18 September 2009)

The Tribunal found that the merger would not substantially prevent or lessen competition in either the wholesale or retail grocery markets in Roodepoort. Sunshine's market share is negligible compared to Masscash and other competitors, and the retail market is highly competitive with several larger players operating within the relevant geographic area. Vertical integration resulting from the transaction does not pose a risk of input or customer foreclosure, as alternative buying groups exist and Sunshine is an insignificant wholesale buyer. No public interest concerns arise from the transaction. Accordingly, the merger is approved unconditionally.

Citation
[2009] ZACT 57
Parties
Applicant: Clidet No 851 (Pty) Ltd; Respondent: Sunshine Cash and Carry CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 September 2009
Case Number
02/LM/Jan09
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Horizontal Analysis, Vertical Integration, Market Definition, Public Interest
Competition Law Commercial and Corporate Merger Control Horizontal Analysis Vertical Integration Market Definition Public Interest

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Parties

Clidet No 851 (Pty) Ltd

Applicant

Sunshine Cash and Carry CC

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Clidet No 851 (Pty) Ltd and Sunshine Cash and Carry CC is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns under the Competition Act.
  3. 3 Whether vertical integration resulting from the merger could lead to input or customer foreclosure.

Ratio Decidendi

The Tribunal found that the merger would not substantially prevent or lessen competition in either the wholesale or retail grocery markets in Roodepoort. Sunshine's market share is negligible compared to Masscash and other competitors, and the retail market is highly competitive with several larger players operating within the relevant geographic area. Vertical integration resulting from the transaction does not pose a risk of input or customer foreclosure, as alternative buying groups exist and Sunshine is an insignificant wholesale buyer. No public interest concerns arise from the transaction. Accordingly, the merger is approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Clidet No 851 (Pty) Ltd and Sunshine Cash and Carry CC is approved without conditions.