Imperial Group (Pty) Ltd and Roshcon (Pty) Ltd (6/LM/JAN 08) [2008] ZACT 18 (6 March 2008)

Imperial Group (Pty) Ltd and Roshcon (Pty) Ltd (6/LM/JAN 08) [2008] ZACT 18 (6 March 2008)

The Tribunal found that the combined market share of the merging parties post-merger would be 21.7%, with a minimal increase in market concentration (HHI change of 49.2 points). The market remained unconcentrated, and significant competitors would continue to operate. No public interest concerns were identified, as employment would be preserved. The transaction was therefore unlikely to substantially lessen or prevent competition and was approved unconditionally.

Citation
[2008] ZACT 18
Parties
Applicant: Imperial Group (Pty) Ltd; Respondent: Roshcon (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 March 2008
Case Number
6/LM/JAN 08
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved unconditionally.
Judges
Y Carrim, U Bhoola, M Mokuena
Legal Topics
Large Merger Review, Market Share Analysis, Public Interest, Unconditional Approval
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Public Interest Unconditional Approval

Case Brief

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Parties

Imperial Group (Pty) Ltd

Applicant

Roshcon (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Imperial Group (Pty) Ltd and Roshcon (Pty) Ltd is likely to substantially lessen or prevent competition in the relevant market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the combined market share of the merging parties post-merger would be 21.7%, with a minimal increase in market concentration (HHI change of 49.2 points). The market remained unconcentrated, and significant competitors would continue to operate. No public interest concerns were identified, as employment would be preserved. The transaction was therefore unlikely to substantially lessen or prevent competition and was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Imperial Group (Pty) Ltd and Roshcon (Pty) Ltd is approved without conditions.