DSV A-S v Panalpina Welttransport Holding (Panalpina World Transport Holding) AG (LM032May19) [2019] ZACT 48 (25 July 2019)

DSV A-S v Panalpina Welttransport Holding (Panalpina World Transport Holding) AG (LM032May19) [2019] ZACT 48 (25 July 2019)

The Tribunal found that while there is a horizontal overlap in the broad market for freight-forwarding and clearing services, there is no overlap in the narrow market for perishable goods. The market is highly fragmented, with over 300 providers and several large competitors. No customers raised concerns, and the merging parties confirmed there would be no negative impact on employment. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and raises no public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2019] ZACT 48
Parties
Applicant: DSV A/S; Respondent: Panalpina Welttransport Holding (Panalpina World Transport Holding) AG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 July 2019
Case Number
LM032May19
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
E Daniels, A Wessels, M Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Market Definition
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Market Definition

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Parties

DSV A/S

Applicant

Panalpina Welttransport Holding (Panalpina World Transport Holding) AG

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between DSV A/S and Panalpina Welttransport Holding AG is likely to substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that while there is a horizontal overlap in the broad market for freight-forwarding and clearing services, there is no overlap in the narrow market for perishable goods. The market is highly fragmented, with over 300 providers and several large competitors. No customers raised concerns, and the merging parties confirmed there would be no negative impact on employment. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and raises no public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between DSV A/S and Panalpina Welttransport Holding AG is approved without conditions.