DCD SPV v Van De Wetering Industriee (Pty) Limited (020438) [2015] ZACT 12 (18 February 2015)

DCD SPV v Van De Wetering Industriee (Pty) Limited (020438) [2015] ZACT 12 (18 February 2015)

The Tribunal found that the proposed transaction does not result in any horizontal or vertical overlap between the activities of the merging parties, as DCD SPV is a newly incorporated entity with no existing operations and its shareholders have no interests in the relevant markets. The introduction of ARIH as a shareholder does not affect this assessment. The Tribunal further found that the transaction raises no public interest concerns, including employment effects. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and approved the transaction unconditionally.

Citation
[2015] ZACT 12
Parties
Applicant: DCD SPV; Respondent: Van De Wetering Industriee (Pty) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 February 2015
Case Number
020438
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Andreas Wessels, Anton Roskam, Fiona Tregenna
Legal Topics
Merger Control, Public Interest, Horizontal Overlap, Vertical Concerns
Competition Law Commercial and Corporate Merger Control Public Interest Horizontal Overlap Vertical Concerns

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2
Sign in to unlock

Parties

DCD SPV

Applicant

Van De Wetering Industriee (Pty) Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between DCD SPV and Van De Wetering Industriee (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether the introduction of ARIH as a shareholder in DCD SPV affects the competition assessment.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal or vertical overlap between the activities of the merging parties, as DCD SPV is a newly incorporated entity with no existing operations and its shareholders have no interests in the relevant markets. The introduction of ARIH as a shareholder does not affect this assessment. The Tribunal further found that the transaction raises no public interest concerns, including employment effects. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between DCD SPV and Van De Wetering Industriee (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the merger.