Footgear (Pty) Ltd v Assets and business associated with the "Edgars Active" and "High Key" brands of Edcon Ltd (LM075Jul19) [2019] ZACT 68 (17 October 2019)

Footgear (Pty) Ltd v Assets and business associated with the "Edgars Active" and "High Key" brands of Edcon Ltd (LM075Jul19) [2019] ZACT 68 (17 October 2019)

The Tribunal found that the proposed transaction resulted in moderate market share increases in the relevant markets for athleisure branded and non-branded footwear, apparel, and accessories. The merged entity would continue to face competition from several significant market participants, and the provision of credit facilities was not a material differentiator. The parties' undertaking not to effect retrenchments addressed public interest concerns. Accordingly, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition or raise public interest concerns, and approved the transaction unconditionally.

Citation
[2019] ZACT 68
Parties
Applicant: Footgear (Pty) Ltd; Respondent: Assets and business associated with the "Edgars Active" and "High Key" brands of Edcon Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 October 2019
Case Number
LM075Jul19
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Enver Daniels, Yasmin Carrim, Andiswa Ndoni
Legal Topics
Merger Control, Retail Market Definition, Public Interest Undertakings, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Retail Market Definition Public Interest Undertakings Market Share Analysis

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Parties

Footgear (Pty) Ltd

Applicant

Assets and business associated with the "Edgars Active" and "High Key" brands of Edcon Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, specifically regarding retrenchments.

Ratio Decidendi

The Tribunal found that the proposed transaction resulted in moderate market share increases in the relevant markets for athleisure branded and non-branded footwear, apparel, and accessories. The merged entity would continue to face competition from several significant market participants, and the provision of credit facilities was not a material differentiator. The parties' undertaking not to effect retrenchments addressed public interest concerns. Accordingly, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition or raise public interest concerns, and approved the transaction unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Footgear (Pty) Ltd and the assets and business associated with the "Edgars Active" and "High Key" brands of Edcon Ltd is approved unconditionally.