Dip Holdco v New Delphi (62/LM/Sep09) [2009] ZACT 65; [2009] 2 CPLR 399 (CT) (25 November 2009)

Dip Holdco v New Delphi (62/LM/Sep09) [2009] ZACT 65; [2009] 2 CPLR 399 (CT) (25 November 2009)

The Tribunal found that there is no horizontal overlap in the activities of Dip Holdco and New Delphi, as Dip Holdco only distributes automotive parts and accessories and does not manufacture them. The vertical relationship between the parties, involving the supply of ECU's and C&S Mechatronics to General Motors South Africa, was considered unlikely to result in foreclosure concerns due to the limited market shares and the international scope of the market. The Tribunal relied on its previous decision in General Motors South Africa (Pty) Ltd and Midas Group (Pty) Ltd to conclude that branded and non-branded spare parts do not constitute the same market. No significant public interest...

Citation
[2009] ZACT 65
Parties
Applicant: Dip Holdco LLP; Respondent: New Delphi
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 November 2009
Case Number
62/LM/Sep09
Procedural Posture
Merger Application / Decision on Approval
Outcome
Merger unconditionally approved.
Judges
Y Carrim, N Theron, A Wessels
Legal Topics
Merger Control, Vertical Relationships, Market Definition, Public Interest
Competition Law Commercial and Corporate Merger Control Vertical Relationships Market Definition Public Interest

Case Brief

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Parties

Dip Holdco LLP

Applicant

New Delphi

Respondent

Procedural Posture

Merger Application / Decision on Approval

Legal Issues

  1. 1 Whether the proposed acquisition of New Delphi by Dip Holdco will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether any significant public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap in the activities of Dip Holdco and New Delphi, as Dip Holdco only distributes automotive parts and accessories and does not manufacture them. The vertical relationship between the parties, involving the supply of ECU's and C&S Mechatronics to General Motors South Africa, was considered unlikely to result in foreclosure concerns due to the limited market shares and the international scope of the market. The Tribunal relied on its previous decision in General Motors South Africa (Pty) Ltd and Midas Group (Pty) Ltd to conclude that branded and non-branded spare parts do not constitute the same market. No significant public interest...

Court Disposition

Merger unconditionally approved.

Orders

  • The acquisition by Dip Holdco LLP of New Delphi is approved without conditions.