Ferro South Africa (Pty) Ltd v Performance Colour Systems, a Division of Speed Bird Investment Holdings (Pty) Ltd (LM120Oct19) [2020] ZACT 82 (29 January 2020)

Ferro South Africa (Pty) Ltd v Performance Colour Systems, a Division of Speed Bird Investment Holdings (Pty) Ltd (LM120Oct19) [2020] ZACT 82 (29 January 2020)

The Tribunal found that the proposed merger between Ferro and PCS would not substantially prevent or lessen competition in any relevant market. The product overlap was limited due to differences in product mix and customer base. The merged entity's market share would be constrained by imports and other competitors. Concerns regarding bundling and tying were unsubstantiated, as similar bundles could be offered by other market participants. No vertical foreclosure concerns were identified, and all PCS employees would be transferred in accordance with section 197 of the Labour Relations Act. No public interest issues arose from the transaction. Accordingly, the Tribunal approved the merger...

Citation
[2020] ZACT 82
Parties
Applicant: Ferro South Africa (Pty) Ltd; Respondent: Performance Colour Systems, a Division of Speed Bird Investment Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 January 2020
Case Number
LM120Oct19
Procedural Posture
Merger Control / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Y Carrim, A Ndoni, H Cheadle
Legal Topics
Merger Control, Market Share Analysis, Vertical Overlap, Bundling and Tying, Public Interest, Labour Relations Act Transfer
Competition Law Commercial and Corporate Merger Control Market Share Analysis Vertical Overlap Bundling and Tying Public Interest Labour Relations Act Transfer

Case Brief

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Parties

Ferro South Africa (Pty) Ltd

Applicant

Performance Colour Systems, a Division of Speed Bird Investment Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger between Ferro and PCS is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed merger between Ferro and PCS would not substantially prevent or lessen competition in any relevant market. The product overlap was limited due to differences in product mix and customer base. The merged entity's market share would be constrained by imports and other competitors. Concerns regarding bundling and tying were unsubstantiated, as similar bundles could be offered by other market participants. No vertical foreclosure concerns were identified, and all PCS employees would be transferred in accordance with section 197 of the Labour Relations Act. No public interest issues arose from the transaction. Accordingly, the Tribunal approved the merger...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.