Hirt and Carter Group Proprietary Limited v First Impression Labels Proprietary Limited (LM223Dec18) [2019] ZACT 14 (19 March 2019)

Hirt and Carter Group Proprietary Limited v First Impression Labels Proprietary Limited (LM223Dec18) [2019] ZACT 14 (19 March 2019)

The Tribunal found that the merged entity's market shares in all relevant product markets would remain low, with the highest being 9.37% for self-adhesive labels and minimal accretion. The market is highly fragmented, with numerous alternative suppliers available to customers, ensuring that the merged entity would not be able to exercise market power. The retrenchments identified were not merger specific, as they resulted from operational decisions predating the merger negotiations and were not caused by the transaction itself. The South African Typographical Union confirmed that it had no concerns regarding the merger. The non-renewal of a retiring employee's contract was not considered...

Citation
[2019] ZACT 14
Parties
Applicant: Hirt and Carter Group Proprietary Limited; Respondent: First Impression Labels Proprietary Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 March 2019
Case Number
LM223Dec18
Procedural Posture
Merger Application / Approval
Outcome
The merger was unconditionally approved.
Judges
N Manoim, M Mazwai, I Valodia
Legal Topics
Horizontal Merger, Market Share Analysis, Public Interest, Retrenchment, Employment Effects
Competition Law Commercial and Corporate Horizontal Merger Market Share Analysis Public Interest Retrenchment Employment Effects

Case Brief

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Parties

Hirt and Carter Group Proprietary Limited

Applicant

First Impression Labels Proprietary Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the retrenchments associated with the transaction are merger specific and raise public interest concerns.

Ratio Decidendi

The Tribunal found that the merged entity's market shares in all relevant product markets would remain low, with the highest being 9.37% for self-adhesive labels and minimal accretion. The market is highly fragmented, with numerous alternative suppliers available to customers, ensuring that the merged entity would not be able to exercise market power. The retrenchments identified were not merger specific, as they resulted from operational decisions predating the merger negotiations and were not caused by the transaction itself. The South African Typographical Union confirmed that it had no concerns regarding the merger. The non-renewal of a retiring employee's contract was not considered...

Court Disposition

The merger was unconditionally approved.

Orders

  • The transaction is approved without conditions.