Ford Motor Company and South African Motor Corporation (Pty) Ltd (23/LM/Feb00) [2000] ZACT 14 (14 April 2000)

Ford Motor Company and South African Motor Corporation (Pty) Ltd (23/LM/Feb00) [2000] ZACT 14 (14 April 2000)

The Tribunal found that the merger would not affect competition in any relevant product market because Ford is only increasing its shareholding in Samcor, where it already holds a significant interest. Ford does not supply products or services in South Africa other than through Samcor and Ford Credit SA. The Tribunal was satisfied that the merger does not raise any public interest concerns listed in section 16(3) of the Competition Act. Accordingly, the merger was approved without conditions.

Citation
[2000] ZACT 14
Parties
Applicant: Ford Motor Company; Respondent: South African Motor Corporation (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 April 2000
Case Number
23/LM/Feb00
Procedural Posture
Merger Clearance / Decision on Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, S. Zilwa
Legal Topics
Large Merger, Public Interest, Shareholding Increase, Merger Clearance Certificate
Competition Law Large Merger Public Interest Shareholding Increase Merger Clearance Certificate

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Parties

Ford Motor Company

Applicant

South African Motor Corporation (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Decision on Approval

Legal Issues

  1. 1 Does the proposed merger substantially prevent or lessen competition in any relevant market?
  2. 2 Does the merger raise any public interest concerns under section 16(3) of the Competition Act?

Ratio Decidendi

The Tribunal found that the merger would not affect competition in any relevant product market because Ford is only increasing its shareholding in Samcor, where it already holds a significant interest. Ford does not supply products or services in South Africa other than through Samcor and Ford Credit SA. The Tribunal was satisfied that the merger does not raise any public interest concerns listed in section 16(3) of the Competition Act. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Ford Motor Company and South African Motor Corporation (Pty) Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.