Edgars Consolidated Stores Limited and Retail Apparel Group (Pty) Ltd (53/LM/Aug02) [2002] ZACT 54 (10 October 2002)

Edgars Consolidated Stores Limited and Retail Apparel Group (Pty) Ltd (53/LM/Aug02) [2002] ZACT 54 (10 October 2002)

The Tribunal found that the relevant market consists of the retailing of clothing, footwear, and accessories to low to high middle-income consumers on a national basis. Edcon is not dominant in any product category, and RAG's market share is small. The increase in market concentration resulting from the merger is minimal, and RAG's liquidation means no effective competitor is removed. The Tribunal concluded that competition will not be substantially lessened or prevented. Regarding public interest, the retrenchments at RAG were due to liquidation, not the merger, and Edcon will offer employment to some RAG employees. No other substantial public interest grounds were raised. The merger was...

Citation
[2002] ZACT 54
Parties
Applicant: Edgars Consolidated Stores Limited; Respondent: Retail Apparel Group (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 October 2002
Case Number
53/LM/Aug02
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
N. Manoim, D. Lewis, P. Maponya
Legal Topics
Large Merger Review, Market Definition, Public Interest, Horizontal Merger, Retail Clothing Market
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Horizontal Merger Retail Clothing Market

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 Amounts and remedies 9
Sign in to unlock

Parties

Edgars Consolidated Stores Limited

Applicant

Retail Apparel Group (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Edgars Consolidated Stores Limited and Retail Apparel Group (Pty) Ltd will substantially lessen or prevent competition in the relevant markets.
  2. 2 Whether the transaction raises any substantial public interest concerns.

Ratio Decidendi

The Tribunal found that the relevant market consists of the retailing of clothing, footwear, and accessories to low to high middle-income consumers on a national basis. Edcon is not dominant in any product category, and RAG's market share is small. The increase in market concentration resulting from the merger is minimal, and RAG's liquidation means no effective competitor is removed. The Tribunal concluded that competition will not be substantially lessened or prevented. Regarding public interest, the retrenchments at RAG were due to liquidation, not the merger, and Edcon will offer employment to some RAG employees. No other substantial public interest grounds were raised. The merger was...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Edgars Consolidated Stores Limited and Retail Apparel Group (Pty) Ltd is approved without conditions.
  • No substantial lessening or prevention of competition is found.