Emasa Holdings v Dewfresh (Pty) Ltd (LM031May20) [2020] ZACT 17 (28 July 2020)

Emasa Holdings v Dewfresh (Pty) Ltd (LM031May20) [2020] ZACT 17 (28 July 2020)

The Tribunal found that there were no overlaps between the activities of the merging parties and that the transaction would not substantially prevent or lessen competition in any relevant market. The Commission's investigation confirmed that neither customers nor competitors raised concerns, and the Food and Allied Workers Union confirmed that Dewfresh's employees were notified and did not object. The transaction promotes broad-based black economic empowerment and does not negatively affect employment. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2020] ZACT 17
Parties
Applicant: Emasa Holdings (Pty) Ltd; Respondent: Dewfresh (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 July 2020
Case Number
LM031May20
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved unconditionally.
Judges
M Mazwai, E Daniels, I Valodia
Legal Topics
Large Merger, Joint Control, Public Interest, Broad Based Black Economic Empowerment
Competition Law Commercial and Corporate Large Merger Joint Control Public Interest Broad Based Black Economic Empowerment

Case Brief

Summary, issues, holding and outcome

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Parties

Emasa Holdings (Pty) Ltd

Applicant

Dewfresh (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger between Emasa Holdings and Dewfresh is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment and broad-based black economic empowerment.

Ratio Decidendi

The Tribunal found that there were no overlaps between the activities of the merging parties and that the transaction would not substantially prevent or lessen competition in any relevant market. The Commission's investigation confirmed that neither customers nor competitors raised concerns, and the Food and Allied Workers Union confirmed that Dewfresh's employees were notified and did not object. The transaction promotes broad-based black economic empowerment and does not negatively affect employment. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Emasa Holdings (Pty) Ltd and Dewfresh (Pty) Ltd is approved without conditions.