Imperial Holdings Limited v Pharmed Pharmaceuticals (Pty) Ltd (018887) [2014] ZACT 13 (31 July 2014)

Imperial Holdings Limited v Pharmed Pharmaceuticals (Pty) Ltd (018887) [2014] ZACT 13 (31 July 2014)

The Tribunal found that the proposed acquisition would result in Imperial Holdings Limited acquiring between 62% and 76% of Pharmed Pharmaceuticals (Pty) Ltd, with the remainder held by minority shareholders. In the wholesale pharmaceutical distribution market, the merged entity's market share would remain below 5%, with accretion below 4%, and significant competition from established players such as UPD, UTi Pharma, and Alphapharm. Customers in this market possess substantial countervailing power. In the courier and express services market, the merged entity's market share would be between 2.5% and 7%, with minimal accretion below 0.1%, and strong competition from DHL, FedEx, and UTi Sun...

Citation
[2014] ZACT 13
Parties
Applicant: Imperial Holdings Limited; Respondent: Pharmed Pharmaceuticals (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 July 2014
Case Number
018887
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The merger is approved unconditionally.
Judges
Yasmin Carrim, Takalani Madima, Andiswa Ndoni
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Wholesale Distribution, Courier Services
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Wholesale Distribution Courier Services

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Parties

Imperial Holdings Limited

Applicant

Pharmed Pharmaceuticals (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the wholesale pharmaceutical distribution market.
  2. 2 Whether the proposed acquisition would substantially prevent or lessen competition in the courier and express services market.
  3. 3 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the proposed acquisition would result in Imperial Holdings Limited acquiring between 62% and 76% of Pharmed Pharmaceuticals (Pty) Ltd, with the remainder held by minority shareholders. In the wholesale pharmaceutical distribution market, the merged entity's market share would remain below 5%, with accretion below 4%, and significant competition from established players such as UPD, UTi Pharma, and Alphapharm. Customers in this market possess substantial countervailing power. In the courier and express services market, the merged entity's market share would be between 2.5% and 7%, with minimal accretion below 0.1%, and strong competition from DHL, FedEx, and UTi Sun...

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed acquisition by Imperial Holdings Limited of Pharmed Pharmaceuticals (Pty) Ltd is approved without conditions.