Lodestone Brand (Pty) Ltd v Mister Sweet (Pty) Ltd (82/LM/SEP11) [2011] ZACT 110 (22 December 2011)

Lodestone Brand (Pty) Ltd v Mister Sweet (Pty) Ltd (82/LM/SEP11) [2011] ZACT 110 (22 December 2011)

The Tribunal found that the overlap between the parties was limited to specific segments of the sugar-based confectionary market, namely panned confectionary and toffees, chews, and caramels. The merged entity's post-merger market share would be less than 20% in all relevant product markets, with significant competitors remaining. No employment losses or other public interest concerns were identified. Therefore, the merger was unlikely to substantially prevent or lessen competition, and no conditions were necessary.

Citation
[2011] ZACT 110
Parties
Applicant: Lodestone Brands (Pty) Ltd; Respondent: Mister Sweet (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 December 2011
Case Number
82/LM/SEP11
Procedural Posture
Merger Approval / Decision on Large Merger
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Confectionary Industry
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Confectionary Industry

Case Brief

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Parties

Lodestone Brands (Pty) Ltd

Applicant

Mister Sweet (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Decision on Large Merger

Legal Issues

  1. 1 Whether the proposed merger between Lodestone Brands (Pty) Ltd and Mister Sweet (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment losses.

Ratio Decidendi

The Tribunal found that the overlap between the parties was limited to specific segments of the sugar-based confectionary market, namely panned confectionary and toffees, chews, and caramels. The merged entity's post-merger market share would be less than 20% in all relevant product markets, with significant competitors remaining. No employment losses or other public interest concerns were identified. Therefore, the merger was unlikely to substantially prevent or lessen competition, and no conditions were necessary.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Lodestone Brands (Pty) Ltd and Mister Sweet (Pty) Ltd is approved without conditions.