Imperial Holdings Limited v Pharmed Pharmaceuticals (Pty) Ltd (018887) [2014] ZACT 106 (31 July 2014)

Imperial Holdings Limited v Pharmed Pharmaceuticals (Pty) Ltd (018887) [2014] ZACT 106 (31 July 2014)

The Tribunal found that the proposed acquisition would result in Imperial Holdings Limited holding between 62% and 76% of Pharmed Pharmaceuticals (Pty) Ltd, with the remainder held by minority shareholders. In the market for wholesale distribution of pharmaceutical products, the merged entity's market share would remain below 5%, with accretion below 4%. 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%. Both markets are characterized by strong competition from large players and significant countervailing power among customers. The Commission identified no public interest concerns. The Tribunal...

Citation
[2014] ZACT 106
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 / Final Determination
Outcome
Merger 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

Case Brief

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Parties

Imperial Holdings Limited

Applicant

Pharmed Pharmaceuticals (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition by Imperial Holdings Limited of Pharmed Pharmaceuticals (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 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 holding between 62% and 76% of Pharmed Pharmaceuticals (Pty) Ltd, with the remainder held by minority shareholders. In the market for wholesale distribution of pharmaceutical products, the merged entity's market share would remain below 5%, with accretion below 4%. 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%. Both markets are characterized by strong competition from large players and significant countervailing power among customers. The Commission identified no public interest concerns. The Tribunal...

Court Disposition

Merger approved unconditionally.

Orders

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