Hapag-Lloyd Aktiengesellschaft v DAL Deutsche Africa-Linien GmbH & Co. KG (LM199Mar22) [2022] ZACT 104 (24 May 2022)

Hapag-Lloyd Aktiengesellschaft v DAL Deutsche Africa-Linien GmbH & Co. KG (LM199Mar22) [2022] ZACT 104 (24 May 2022)

The Tribunal found that the proposed merger between Hapag-Lloyd Aktiengesellschaft and DAL Deutsche Africa-Linien GmbH & Co. KG would not substantially lessen or prevent competition in any of the relevant container liner shipping markets, as the merged entity would have low market shares and would continue to face competition from other major shipping lines. The Tribunal also considered public interest factors, including employment and BEE compliance. The merging parties undertook that there would be no merger-specific job losses or retrenchments in South Africa for 36 months post-merger, and that BEE compliance levels would be maintained. The Tribunal imposed this employment undertaking...

Citation
[2022] ZACT 104
Parties
Applicant: Hapag-Lloyd Aktiengesellschaft; Respondent: DAL Deutsche Africa-Linien GmbH & Co. KG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 May 2022
Case Number
LM199Mar22
Procedural Posture
Large Merger Review / Decision on Merger Approval
Outcome
Merger conditionally approved subject to employment protection conditions.
Judges
Enver Daniels, Yasmin Carrim, Thando Vilakazi
Legal Topics
Large Merger, Horizontal Overlap, Public Interest, Bee Compliance, Employment Protection
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Public Interest Bee Compliance Employment Protection

Case Brief

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Parties

Hapag-Lloyd Aktiengesellschaft

Applicant

DAL Deutsche Africa-Linien GmbH & Co. KG

Respondent

Procedural Posture

Large Merger Review / Decision on Merger Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially lessen or prevent competition in the relevant container liner shipping markets.
  2. 2 Whether the merger will have a negative impact on employment in South Africa.
  3. 3 Whether the merger will affect BEE compliance and public interest considerations.

Ratio Decidendi

The Tribunal found that the proposed merger between Hapag-Lloyd Aktiengesellschaft and DAL Deutsche Africa-Linien GmbH & Co. KG would not substantially lessen or prevent competition in any of the relevant container liner shipping markets, as the merged entity would have low market shares and would continue to face competition from other major shipping lines. The Tribunal also considered public interest factors, including employment and BEE compliance. The merging parties undertook that there would be no merger-specific job losses or retrenchments in South Africa for 36 months post-merger, and that BEE compliance levels would be maintained. The Tribunal imposed this employment undertaking...

Court Disposition

Merger conditionally approved subject to employment protection conditions.

Orders

  • The merger between Hapag-Lloyd Aktiengesellschaft and DAL Deutsche Africa-Linien GmbH & Co. KG is approved subject to the condition that there will be no merger-specific job losses or retrenchments in South Africa for a period of 36 months after closing.
  • The merging parties must maintain the BEE compliance levels of the South African firms involved in the transaction.