Friedshelf 243 (Pty) Ltd and Gillette South Africa (Pty) Ltd (03/LM/Jan03) [2003] ZACT 11 (27 February 2003)

Friedshelf 243 (Pty) Ltd and Gillette South Africa (Pty) Ltd (03/LM/Jan03) [2003] ZACT 11 (27 February 2003)

The Tribunal found that the merger would not result in any product overlap in either the horizontal or vertical product markets, as Friedshelf 243 (Pty) Ltd is a special purpose vehicle with no prior trading activity. The transaction introduces a new player into the market, and Gillette's market share will be reduced, leaving it with only the Duracell brand. The Eveready brand will continue to focus on the middle to lower end of the market. No public interest concerns, such as retrenchments or other adverse effects, were identified. Accordingly, the merger was approved without conditions.

Citation
[2003] ZACT 11
Parties
Applicant: Friedshelf 243 (Pty) Ltd; Respondent: Gillette South Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 February 2003
Case Number
03/LM/Jan03
Procedural Posture
Large Merger Review / Merger Clearance
Outcome
Merger approved without conditions.
Judges
N. Manoim, D. Lewis, U. Bhoola
Legal Topics
Large Merger, Market Share Analysis, Public Interest, Horizontal Merger, Vertical Merger
Competition Law Large Merger Market Share Analysis Public Interest Horizontal Merger Vertical Merger

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Friedshelf 243 (Pty) Ltd

Applicant

Gillette South Africa (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Friedshelf 243 (Pty) Ltd and the Eveready division of Gillette South Africa (Pty) Ltd will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the merger would not result in any product overlap in either the horizontal or vertical product markets, as Friedshelf 243 (Pty) Ltd is a special purpose vehicle with no prior trading activity. The transaction introduces a new player into the market, and Gillette's market share will be reduced, leaving it with only the Duracell brand. The Eveready brand will continue to focus on the middle to lower end of the market. No public interest concerns, such as retrenchments or other adverse effects, were identified. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Friedshelf 243 (Pty) Ltd and the Eveready division of Gillette South Africa (Pty) Ltd is approved without conditions.
  • No retrenchments or other public interest concerns arise from the transaction.