Isuzu Motors Limited v UD Tracks Corporation (Japan) (LM070Jul20) [2020] ZACT 42 (16 November 2020)

Isuzu Motors Limited v UD Tracks Corporation (Japan) (LM070Jul20) [2020] ZACT 42 (16 November 2020)

The Tribunal found that although the merged entity would have a high market share in certain segments, effective competition would remain from well-established competitors and recent entrants. The Commission's analysis indicated that Isuzu and UD Trucks are not each other's closest competitors, as their price ranges and product portfolios differ. The Tribunal accepted assurances from the merging parties that no retrenchments or negative impacts on suppliers would result from the transaction. The public interest concerns raised by DTIC and NUMSA were addressed satisfactorily. Consequently, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen...

Citation
[2020] ZACT 42
Parties
Applicant: Isuzu Motors Limited; Respondent: UD Tracks Corporation (Japan)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 November 2020
Case Number
LM070Jul20
Procedural Posture
Merger Approval / Final Determination
Outcome
The merger is unconditionally approved.
Judges
Y Carrim, E Daniels, T Vilakazi
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Market Share Analysis

Case Brief

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Parties

Isuzu Motors Limited

Applicant

UD Tracks Corporation (Japan)

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Isuzu Motors Limited and UD Trucks Corporation is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including employment and effects on suppliers.

Ratio Decidendi

The Tribunal found that although the merged entity would have a high market share in certain segments, effective competition would remain from well-established competitors and recent entrants. The Commission's analysis indicated that Isuzu and UD Trucks are not each other's closest competitors, as their price ranges and product portfolios differ. The Tribunal accepted assurances from the merging parties that no retrenchments or negative impacts on suppliers would result from the transaction. The public interest concerns raised by DTIC and NUMSA were addressed satisfactorily. Consequently, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen...

Court Disposition

The merger is unconditionally approved.

Orders

  • The proposed transaction between Isuzu Motors Limited and UD Trucks Corporation is approved without conditions.