Invenfin Proprietary Limited v Dynamic Commodities Proprietary Limited (LM044JUN16) [2016] ZACT 65 (12 August 2016)

Invenfin Proprietary Limited v Dynamic Commodities Proprietary Limited (LM044JUN16) [2016] ZACT 65 (12 August 2016)

The Tribunal found that, based on the Commission's market definition, there was no horizontal overlap in the narrower markets and only a minimal overlap in the broader market for frozen processed food, with the merged entity's market share below 5%. The vertical relationship was found to be insignificant, given the small proportion of products distributed through third parties and the presence of other logistics providers. No public interest concerns, including employment effects, were identified. The Tribunal concurred with the Commission's conclusion that the merger was unlikely to substantially prevent or lessen competition or raise public interest concerns, and therefore approved the...

Citation
[2016] ZACT 65
Parties
Applicant: Invenfin Proprietary Limited; Respondent: Dynamic Commodities Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 August 2016
Case Number
LM044JUN16
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Medi Mokuena, Andiswa Ndoni
Legal Topics
Large Merger, Horizontal Overlap, Vertical Relationship, Public Interest, Market Definition
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Vertical Relationship Public Interest Market Definition

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Parties

Invenfin Proprietary Limited

Applicant

Dynamic Commodities Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger between Invenfin and Dynamic Commodities is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that, based on the Commission's market definition, there was no horizontal overlap in the narrower markets and only a minimal overlap in the broader market for frozen processed food, with the merged entity's market share below 5%. The vertical relationship was found to be insignificant, given the small proportion of products distributed through third parties and the presence of other logistics providers. No public interest concerns, including employment effects, were identified. The Tribunal concurred with the Commission's conclusion that the merger was unlikely to substantially prevent or lessen competition or raise public interest concerns, and therefore approved the...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Invenfin Proprietary Limited and Dynamic Commodities Proprietary Limited is approved without conditions.