Investec Principal Investments v NCS Resins (Pty) Ltd (89/LM/Dec09) [2010] ZACT 33; [2010] 1 CPLR 156 (CT) (14 May 2010)

Investec Principal Investments v NCS Resins (Pty) Ltd (89/LM/Dec09) [2010] ZACT 33; [2010] 1 CPLR 156 (CT) (14 May 2010)

The Tribunal found that the merger would result in only a minor increase in market share in the affected markets for the manufacture and distribution of resins and fibreglass. Waterlinx, the relevant subsidiary of Investec, holds an insignificant market share, and the merged entity would continue to face competition from several vertically integrated rivals. The Commission's investigation revealed that neither input nor customer foreclosure was likely, as alternative suppliers and distribution channels remain available. The objections raised by competitors and the trade union were not substantiated by evidence of likely anti-competitive effects. The Tribunal concluded that the merger...

Citation
[2010] ZACT 33
Parties
Applicant: Investec Principal Investments; Respondent: NCS Resins (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 May 2010
Case Number
89/LM/Dec09
Procedural Posture
Merger Application / Approval
Outcome
Merger unconditionally approved.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Vertical Integration, Market Share Analysis, Input Foreclosure, Customer Foreclosure
Competition Law Commercial and Corporate Merger Control Vertical Integration Market Share Analysis Input Foreclosure Customer Foreclosure

Case Brief

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Parties

Investec Principal Investments

Applicant

NCS Resins (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial prevention or lessening of competition in the relevant markets.
  2. 2 Whether the merger raises significant public interest concerns.
  3. 3 Whether the vertical relationship between the parties could lead to input or customer foreclosure.

Ratio Decidendi

The Tribunal found that the merger would result in only a minor increase in market share in the affected markets for the manufacture and distribution of resins and fibreglass. Waterlinx, the relevant subsidiary of Investec, holds an insignificant market share, and the merged entity would continue to face competition from several vertically integrated rivals. The Commission's investigation revealed that neither input nor customer foreclosure was likely, as alternative suppliers and distribution channels remain available. The objections raised by competitors and the trade union were not substantiated by evidence of likely anti-competitive effects. The Tribunal concluded that the merger...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Investec Principal Investments and NCS Resins (Pty) Ltd is approved without conditions.
  • No remedies or undertakings are imposed.