DSV Panalpina A/S v Global Integrated Logistics Business of Agility Public Warehousing Company K.S.C.P (LM022May21) [2021] ZACT 52 (19 July 2021)

DSV Panalpina A/S v Global Integrated Logistics Business of Agility Public Warehousing Company K.S.C.P (LM022May21) [2021] ZACT 52 (19 July 2021)

The Tribunal found that the proposed merger between DSV Panalpina A/S and GIL would not substantially prevent or lessen competition in the markets for freight forwarding and contract logistics services in South Africa. Market shares post-merger would remain low, and numerous competitors would continue to constrain the merged entity. The Tribunal agreed with the Commission's assessment that creeping merger effects were unlikely, given the absence of significant concentration increases. In response to public interest concerns raised by the Minister, the Tribunal imposed a condition prohibiting merger-related retrenchments for two years post-implementation. The Tribunal concluded that,...

Citation
[2021] ZACT 52
Parties
Applicant: DSV Panalpina A/S; Respondent: Global Integrated Logistics Business of Agility Public Warehousing Company K.S.C.P
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 July 2021
Case Number
LM022May21
Procedural Posture
Merger Application / Final Determination
Outcome
Merger conditionally approved subject to employment-related conditions.
Judges
E Daniels, Y Carrim, T Vilakazi
Legal Topics
Large Merger, Horizontal Overlap, Contract Logistics, Public Interest Conditions, Employment Moratorium
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Contract Logistics Public Interest Conditions Employment Moratorium

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 3 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

DSV Panalpina A/S

Applicant

Global Integrated Logistics Business of Agility Public Warehousing Company K.S.C.P

Respondent

Procedural Posture

Merger Application / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between DSV Panalpina A/S and GIL is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises public interest concerns, specifically regarding employment.
  3. 3 Whether the merger should be approved subject to conditions.

Ratio Decidendi

The Tribunal found that the proposed merger between DSV Panalpina A/S and GIL would not substantially prevent or lessen competition in the markets for freight forwarding and contract logistics services in South Africa. Market shares post-merger would remain low, and numerous competitors would continue to constrain the merged entity. The Tribunal agreed with the Commission's assessment that creeping merger effects were unlikely, given the absence of significant concentration increases. In response to public interest concerns raised by the Minister, the Tribunal imposed a condition prohibiting merger-related retrenchments for two years post-implementation. The Tribunal concluded that,...

Court Disposition

Merger conditionally approved subject to employment-related conditions.

Orders

  • The merger between DSV Panalpina A/S and Global Integrated Logistics Business of Agility Public Warehousing Company K.S.C.P is approved subject to the conditions set out in Annexure A.
  • No merger-related retrenchments may occur in South Africa for a period of two years from the implementation date.