Imperial Holdings Limited and Terex Africa (Pty) Ltd (88/LM/Oct06) [2007] ZACT 2; [2007] 1 CPLR 177 (CT) (9 January 2007)

Imperial Holdings Limited and Terex Africa (Pty) Ltd (88/LM/Oct06) [2007] ZACT 2; [2007] 1 CPLR 177 (CT) (9 January 2007)

The Tribunal found that the proposed merger would not result in a substantial lessening or prevention of competition in any of the identified markets. The parties operate in related but not overlapping markets, and the vertical integration created by the merger does not raise significant competition concerns. Market shares in the relevant sectors are either low or, where concentrated, the merged entity does not control a dominant position. The Commission's investigation confirmed that neither input nor customer foreclosure would occur, as MCC Contracts and MCC Plant Hire are not major customers of Terex Africa, and alternative suppliers are available. Concerns raised by competitors...

Citation
[2007] ZACT 2
Parties
Applicant: Imperial Holdings Ltd; Respondent: Terex Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 January 2007
Case Number
88/LM/Oct06
Procedural Posture
Merger Control / Merger Clearance Reasons
Outcome
Merger approved unconditionally; no substantial lessening or prevention of competition found.
Judges
DH Lewis, N Manoim, M Mokuena
Legal Topics
Vertical Integration, Market Concentration, Customer Foreclosure, Input Foreclosure, Merger Clearance, Public Interest
Competition Law Commercial and Corporate Vertical Integration Market Concentration Customer Foreclosure Input Foreclosure Merger Clearance Public Interest

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Imperial Holdings Ltd

Applicant

Terex Africa (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Clearance Reasons

Legal Issues

  1. 1 Whether the proposed merger between Imperial Holdings Ltd and Terex Africa (Pty) Ltd will result in a substantial lessening or prevention of competition in the relevant markets.
  2. 2 Whether the vertical integration resulting from the merger will facilitate collusion or foreclosure of competitors.
  3. 3 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial lessening or prevention of competition in any of the identified markets. The parties operate in related but not overlapping markets, and the vertical integration created by the merger does not raise significant competition concerns. Market shares in the relevant sectors are either low or, where concentrated, the merged entity does not control a dominant position. The Commission's investigation confirmed that neither input nor customer foreclosure would occur, as MCC Contracts and MCC Plant Hire are not major customers of Terex Africa, and alternative suppliers are available. Concerns raised by competitors...

Court Disposition

Merger approved unconditionally; no substantial lessening or prevention of competition found.

Orders

  • The merger between Imperial Holdings Ltd and Terex Africa (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the transaction.