Ensemble Trading 184 (Pty) Ltd and Murray and Roberts Limited (part of the business) (19/LM/Dec99) [1999] ZACT 5 (4 December 1999)

Ensemble Trading 184 (Pty) Ltd and Murray and Roberts Limited (part of the business) (19/LM/Dec99) [1999] ZACT 5 (4 December 1999)

The Tribunal found that the acquisition of part of Murray and Roberts Limited's business by Ensemble Trading 184 (Pty) Ltd, a wholly owned subsidiary of Colas France, would not alter the number of competitors or the concentration level in the relevant market. The market definition, whether narrow or broad, was not determinative in this case, as Ensemble would simply replace Murray and Roberts as a competitor. No public interest concerns were raised, as the transaction would not result in job losses and would facilitate foreign investment into South Africa. Accordingly, the merger was approved without conditions.

Citation
[1999] ZACT 5
Parties
Applicant: Ensemble Trading 184 (Pty) Ltd; Respondent: Murray and Roberts Limited (part of the business)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 December 1999
Case Number
19/LM/Dec99
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
D.H Lewis, N.M. Manoim, D.R. Terblanche
Legal Topics
Merger Clearance, Market Definition, Public Interest, Foreign Investment
Competition Law Merger Clearance Market Definition Public Interest Foreign Investment

Case Brief

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Parties

Ensemble Trading 184 (Pty) Ltd

Applicant

Murray and Roberts Limited (part of the business)

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the merger raises any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the acquisition of part of Murray and Roberts Limited's business by Ensemble Trading 184 (Pty) Ltd, a wholly owned subsidiary of Colas France, would not alter the number of competitors or the concentration level in the relevant market. The market definition, whether narrow or broad, was not determinative in this case, as Ensemble would simply replace Murray and Roberts as a competitor. No public interest concerns were raised, as the transaction would not result in job losses and would facilitate foreign investment into South Africa. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Ensemble Trading 184 (Pty) Ltd and part of the business of Murray and Roberts Limited is approved without conditions.
  • A Merger Clearance Certificate is issued.