Hyundai Automotive v Tangawizi Motors (LM177Jan23) [2023] ZACT 21 (24 March 2023)

Hyundai Automotive v Tangawizi Motors (LM177Jan23) [2023] ZACT 21 (24 March 2023)

The Tribunal found that the proposed merger between Hyundai Automotive South Africa and Tangawizi Motors would not substantially prevent or lessen competition in the market for the retail of Hyundai vehicles, parts, and related services. The transaction does not raise any significant public interest concerns, as...

Source-derived case information.

Citation
[2023] ZACT 21
Parties
Applicant: Hyundai Automotive South Africa (Pty) Ltd; Respondent: Tangawizi Motors (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 March 2023
Case Number
LM177Jan23
Procedural Posture
Merger Application / Decision
Outcome
Merger approved without conditions.
Legal Topics
Large Merger, Retail Motor Industry, Unconditional Approval
Competition Law Commercial and Corporate Large Merger Retail Motor Industry Unconditional Approval

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Parties

Hyundai Automotive South Africa (Pty) Ltd

Applicant

Tangawizi Motors (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Decision

Legal Issues

  1. 1 Whether the proposed acquisition of Tangawizi Motors by Hyundai Automotive South Africa raises competition concerns in the relevant market.
  2. 2 Whether the merger should be approved with or without conditions.

Ratio Decidendi

The Tribunal found that the proposed merger between Hyundai Automotive South Africa and Tangawizi Motors would not substantially prevent or lessen competition in the market for the retail of Hyundai vehicles, parts, and related services. The transaction does not raise any significant public interest concerns, as Tangawizi will continue to operate as a Hyundai dealership, and there is no evidence of negative effects on employment or consumer choice. Accordingly, the Tribunal approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The proposed merger between Hyundai Automotive South Africa (Pty) Ltd and Tangawizi Motors (Pty) Ltd is approved without conditions.