FFS Calpet (RF) Ltd v Calulo Marine (Pty) Ltd (LM039May19) [2019] ZACT 67 (4 September 2019)

FFS Calpet (RF) Ltd v Calulo Marine (Pty) Ltd (LM039May19) [2019] ZACT 67 (4 September 2019)

The Tribunal found that the proposed merger results in a horizontal overlap in the wholesale distribution of marine fuel, but the merged entity would only hold approximately 14.9% market share. Customers confirmed the existence of multiple alternative suppliers, and no concerns were raised regarding competition or public interest. The Commission concluded that the merger is unlikely to substantially prevent or lessen competition or result in adverse public interest effects. The Tribunal accepted these findings and unconditionally approved the transaction.

Citation
[2019] ZACT 67
Parties
Applicant: FFS Calpet (RF) (Pty) Ltd; Respondent: Calulo Marine (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 September 2019
Case Number
LM039May19
Procedural Posture
Merger Application / Approval
Outcome
Merger unconditionally approved.
Judges
Enver Daniels, Andreas Wessels, lmraan Valodia
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Market Share Estimation
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Market Share Estimation

Case Brief

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Parties

FFS Calpet (RF) (Pty) Ltd

Applicant

Calulo Marine (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the wholesale distribution of marine fuel market.
  2. 2 Whether the merger raises any public interest concerns, including retrenchments.

Ratio Decidendi

The Tribunal found that the proposed merger results in a horizontal overlap in the wholesale distribution of marine fuel, but the merged entity would only hold approximately 14.9% market share. Customers confirmed the existence of multiple alternative suppliers, and no concerns were raised regarding competition or public interest. The Commission concluded that the merger is unlikely to substantially prevent or lessen competition or result in adverse public interest effects. The Tribunal accepted these findings and unconditionally approved the transaction.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between FFS Calpet (RF) (Pty) Ltd and Calulo Marine (Pty) Ltd is unconditionally approved.