Imperial Holdings Ltd v CIC Holdings Ltd (49/LM/Aug10) [2010] ZACT 73; [2010] 2 CPLR 328 (CT) (29 October 2010)

Imperial Holdings Ltd v CIC Holdings Ltd (49/LM/Aug10) [2010] ZACT 73; [2010] 2 CPLR 328 (CT) (29 October 2010)

The Tribunal found that the combined post-merger market share of Imperial Holdings Ltd and CIC Holdings Ltd in the market for merchandising and sales services is approximately 12%, which is low relative to competitors such as Smollan Group (40%) and others. The Tribunal accepted that merchandising and logistics are functionally separate markets and that CIC is not involved in logistics. The transaction does not raise any public interest concerns. Accordingly, the Tribunal concluded that the proposed merger is unlikely to substantially lessen or prevent competition and approved the transaction unconditionally.

Citation
[2010] ZACT 73
Parties
Applicant: Imperial Holdings Ltd; Respondent: CIC Holdings Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 October 2010
Case Number
49/LM/Aug10
Procedural Posture
Merger Review / Final Determination
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Market Definition, Public Interest, Post Merger Market Share
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Post Merger Market Share

Case Brief

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Parties

Imperial Holdings Ltd

Applicant

CIC Holdings Ltd

Respondent

Procedural Posture

Merger Review / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Imperial Holdings Ltd and CIC Holdings Ltd is likely to substantially lessen or prevent competition in the market for merchandising and sales services.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the combined post-merger market share of Imperial Holdings Ltd and CIC Holdings Ltd in the market for merchandising and sales services is approximately 12%, which is low relative to competitors such as Smollan Group (40%) and others. The Tribunal accepted that merchandising and logistics are functionally separate markets and that CIC is not involved in logistics. The transaction does not raise any public interest concerns. Accordingly, the Tribunal concluded that the proposed merger is unlikely to substantially lessen or prevent competition and approved the transaction unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Imperial Holdings Ltd and CIC Holdings Ltd is approved without conditions.