Ford Motor Company (USA) and Volvo Cars Corporation (Sweden) (13/LM/Feb00) [2000] ZACT 2 (1 February 2000)

Ford Motor Company (USA) and Volvo Cars Corporation (Sweden) (13/LM/Feb00) [2000] ZACT 2 (1 February 2000)

The Tribunal found that the merger between Ford and Volvo does not raise competition concerns in the South African market. Ford and Volvo operate in distinct sub-markets, with Ford competing against mass-market brands and Volvo against luxury brands. The combined market share post-merger remains well below that of the largest competitors, and there is no evidence of anti-competitive effects. Furthermore, since Volvo has no direct presence in South Africa, there are no anticipated negative public interest effects, such as job losses. The merger was therefore approved without conditions.

Citation
[2000] ZACT 2
Parties
Applicant: Ford Motor Company (USA); Respondent: Volvo Cars Corporation (Sweden)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 February 2000
Case Number
13/LM/Feb00
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
D.H Lewis, N.M. Manoim, M Holden
Legal Topics
Merger Clearance, Market Definition, Public Interest, Horizontal Merger
Competition Law Merger Clearance Market Definition Public Interest Horizontal Merger

Case Brief

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Parties

Ford Motor Company (USA)

Applicant

Volvo Cars Corporation (Sweden)

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Does the merger between Ford and Volvo substantially prevent or lessen competition in the South African motor passenger vehicle market.
  2. 2 Does the merger raise any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the merger between Ford and Volvo does not raise competition concerns in the South African market. Ford and Volvo operate in distinct sub-markets, with Ford competing against mass-market brands and Volvo against luxury brands. The combined market share post-merger remains well below that of the largest competitors, and there is no evidence of anti-competitive effects. Furthermore, since Volvo has no direct presence in South Africa, there are no anticipated negative public interest effects, such as job losses. The merger was therefore approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Ford Motor Company (USA) and Volvo Cars Corporation (Sweden) is approved without conditions.
  • A Merger Clearance Certificate is issued.