Edgars Consolidated Stores Limited and New Clicks Sa (Pty) Ltd (59/LM/JUN07) [2007] ZACT 54; [2007] 2 CPLR 300 (CT) (17 August 2007)

Edgars Consolidated Stores Limited and New Clicks Sa (Pty) Ltd (59/LM/JUN07) [2007] ZACT 54; [2007] 2 CPLR 300 (CT) (17 August 2007)

The Tribunal found that in all relevant product markets except for books and stationery, the combined post-merger market shares are less than 10%, which does not raise competition concerns. In the market for books and stationery, the combined share is approximately 30%, but the accretion due to the merger is small. The Tribunal accepted the broader market definition due to supply-side substitution and found no evidence that the merger would substantially prevent or lessen competition. There were no public interest concerns identified. Accordingly, the merger was approved without conditions.

Citation
[2007] ZACT 54
Parties
Applicant: Edgars Consolidated Stores Limited; Respondent: New Clicks SA (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 August 2007
Case Number
59/LM/JUN07
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
DH Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Market Definition, Public Interest, Retail Sector
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Retail Sector

Case Brief

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Parties

Edgars Consolidated Stores Limited

Applicant

New Clicks SA (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Edgars Consolidated Stores Limited and New Clicks SA (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether there are any public interest concerns arising from the merger.
  3. 3 Whether the market definition used for books and stationery is appropriate for competition analysis.

Ratio Decidendi

The Tribunal found that in all relevant product markets except for books and stationery, the combined post-merger market shares are less than 10%, which does not raise competition concerns. In the market for books and stationery, the combined share is approximately 30%, but the accretion due to the merger is small. The Tribunal accepted the broader market definition due to supply-side substitution and found no evidence that the merger would substantially prevent or lessen competition. There were no public interest concerns identified. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Edgars Consolidated Stores Limited and New Clicks SA (Pty) Ltd is approved.
  • No conditions are attached to the approval.