Equatorial Trading Limited and Another v Wilmar Continental Edible Oils and Another (LM238Feb16) [2016] ZACT 31 (12 April 2016)

Equatorial Trading Limited and Another v Wilmar Continental Edible Oils and Another (LM238Feb16) [2016] ZACT 31 (12 April 2016)

The Tribunal found that the proposed transaction would not result in any substantial prevention or lessening of competition in any relevant market. The acquiring firms already indirectly controlled the target firm, and the transaction did not alter market structure or incentives. The management of the target firm would remain unchanged post-merger, and there was no evidence that the sellers constrained the acquiring firms' ability to influence decisions or day-to-day management. No adverse public interest concerns, including employment, were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2016] ZACT 31
Parties
Applicant: Equatorial Trading Limited; Applicant: Wilmar Resources, Pte Ltd; Respondent: Wilmar Continental Edible Oils and Fats (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 April 2016
Case Number
LM238Feb16
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Anton Roskam, Andiswa Ndoni
Legal Topics
Merger Control, Market Structure, Public Interest, Vertical and Horizontal Overlap
Competition Law Commercial and Corporate Merger Control Market Structure Public Interest Vertical and Horizontal Overlap

Case Brief

Summary, issues, holding and outcome

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Parties

Equatorial Trading Limited

Applicant

Wilmar Resources, Pte Ltd

Applicant

Wilmar Continental Edible Oils and Fats (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed transaction will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.
  3. 3 Whether the sellers constrained the acquiring firms' ability to influence the management of the target firm.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in any substantial prevention or lessening of competition in any relevant market. The acquiring firms already indirectly controlled the target firm, and the transaction did not alter market structure or incentives. The management of the target firm would remain unchanged post-merger, and there was no evidence that the sellers constrained the acquiring firms' ability to influence decisions or day-to-day management. No adverse public interest concerns, including employment, were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The proposed transaction between Equatorial Trading Limited, Wilmar Resources, Pte Ltd, and Wilmar Continental Edible Oils and Fats (Pty) Ltd is approved unconditionally.