Established Investments (Pty) Limited and National Cereal Holdings (Pty) Limited (61/LM/Aug04) [2004] ZACT 61 (15 September 2004)

Established Investments (Pty) Limited and National Cereal Holdings (Pty) Limited (61/LM/Aug04) [2004] ZACT 61 (15 September 2004)

The Tribunal found that the merger between Established Investments (Pty) Limited and National Cereal Holdings (Pty) Limited does not create any overlaps or vertical integration in the relevant product markets. Neither Nedcor nor Fabvest owns any significant interest in competitors of Premier Foods, and the transaction will not affect operations or result in job losses. The joint control structure is transparent, and the parties have undertaken to notify the Commission of any future changes. The Tribunal agreed with the Commission's submission that the transaction is unlikely to result in the substantial lessening or prevention of competition and approved the merger unconditionally.

Citation
[2004] ZACT 61
Parties
Applicant: Established Investments (Pty) Limited; Respondent: National Cereal Holdings (Pty) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 September 2004
Case Number
61/LM/Aug04
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Medi Mokuena, Lawrence Reyburn
Legal Topics
Large Merger Review, Joint Control, Vertical Integration, Public Interest, Substantial Lessening of Competition
Competition Law Commercial and Corporate Large Merger Review Joint Control Vertical Integration Public Interest Substantial Lessening of Competition

Case Brief

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Parties

Established Investments (Pty) Limited

Applicant

National Cereal Holdings (Pty) Limited

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Does the merger between Established Investments (Pty) Limited and National Cereal Holdings (Pty) Limited substantially lessen or prevent competition in the relevant market?
  2. 2 Will the transaction result in any adverse public interest effects, including job losses or operational changes?
  3. 3 Does the transaction create any overlaps or vertical integration concerns in the relevant product markets?

Ratio Decidendi

The Tribunal found that the merger between Established Investments (Pty) Limited and National Cereal Holdings (Pty) Limited does not create any overlaps or vertical integration in the relevant product markets. Neither Nedcor nor Fabvest owns any significant interest in competitors of Premier Foods, and the transaction will not affect operations or result in job losses. The joint control structure is transparent, and the parties have undertaken to notify the Commission of any future changes. The Tribunal agreed with the Commission's submission that the transaction is unlikely to result in the substantial lessening or prevention of competition and approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Established Investments (Pty) Limited and National Cereal Holdings (Pty) Limited is approved unconditionally.
  • No conditions are imposed on the parties.