Engine Holding GmbH v Tognum AG and Another (46/LM/JUN11) [2011] ZACT 52 (21 July 2011)

Engine Holding GmbH v Tognum AG and Another (46/LM/JUN11) [2011] ZACT 52 (21 July 2011)

The Tribunal found that there is no overlap in the activities of the merging parties in South Africa, and Bergen's activities are extremely limited locally. Internationally, the merged entity's market shares would remain below 15% in all relevant product markets, with sufficient competitors present. The Commission also identified certain vertical supply relationships but concluded these do not raise foreclosure concerns in South Africa. The Tribunal accepted the merging parties' submission that the transaction would not negatively affect employment or raise other public interest concerns. Therefore, the Tribunal concluded that the proposed transaction is unlikely to lead to a substantial...

Citation
[2011] ZACT 52
Parties
Applicant: Engine Holding GmbH; Respondent: Tognum AG; Respondent: The Bergen Business
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 July 2011
Case Number
46/LM/JUN11
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Substantial Prevention or Lessening of Competition, Vertical Relationships, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Substantial Prevention or Lessening of Competition Vertical Relationships Public Interest Market Share Analysis

Case Brief

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Parties

Engine Holding GmbH

Applicant

Tognum AG

Respondent

The Bergen Business

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial prevention or lessening of 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 there is no overlap in the activities of the merging parties in South Africa, and Bergen's activities are extremely limited locally. Internationally, the merged entity's market shares would remain below 15% in all relevant product markets, with sufficient competitors present. The Commission also identified certain vertical supply relationships but concluded these do not raise foreclosure concerns in South Africa. The Tribunal accepted the merging parties' submission that the transaction would not negatively affect employment or raise other public interest concerns. Therefore, the Tribunal concluded that the proposed transaction is unlikely to lead to a substantial...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.