Diageo Africa B.V v Newshelf 1167 t/a United National Breweries SA (021196) [2015] ZACT 143 (28 May 2015)

Diageo Africa B.V v Newshelf 1167 t/a United National Breweries SA (021196) [2015] ZACT 143 (28 May 2015)

The Tribunal found that the proposed transaction, involving Diageo acquiring the remaining 50% of UNB, would not alter the competitive structure of the affected markets, as Diageo already held a significant shareholding. The presence of other competitors, such as SAB and Distillers, and the non-homogenous nature of the products, made coordination unlikely. The Commission's investigation revealed no evidence that the merger would facilitate coordinated effects or enable unilateral price increases. Furthermore, the merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. The Tribunal concurred with the Commission's assessment and...

Citation
[2015] ZACT 143
Parties
Applicant: Diageo Africa B.V; Respondent: Newshelf 1167 t/a United National Breweries SA
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 May 2015
Case Number
021196
Procedural Posture
Merger Approval / Decision
Outcome
Merger unconditionally approved.
Judges
Yasmin Carrim, Mondo Mazwai, Anton A Roskam
Legal Topics
Merger Control, Coordinated Effects, Public Interest, Market Structure
Competition Law Merger Control Coordinated Effects Public Interest Market Structure

Case Brief

Summary, issues, holding and outcome

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Parties

Diageo Africa B.V

Applicant

Newshelf 1167 t/a United National Breweries SA

Respondent

Procedural Posture

Merger Approval / Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger would facilitate coordinated effects among competitors.
  3. 3 Whether the transaction raises any public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction, involving Diageo acquiring the remaining 50% of UNB, would not alter the competitive structure of the affected markets, as Diageo already held a significant shareholding. The presence of other competitors, such as SAB and Distillers, and the non-homogenous nature of the products, made coordination unlikely. The Commission's investigation revealed no evidence that the merger would facilitate coordinated effects or enable unilateral price increases. Furthermore, the merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. The Tribunal concurred with the Commission's assessment and...

Court Disposition

Merger unconditionally approved.

Orders

  • The proposed transaction between Diageo Africa B.V and Newshelf 1167 t/a United National Breweries SA is approved unconditionally.