Lodestone Investment Holdings (Pty) Ltd v Candy Tops (Pty) Ltd (45/LM/Aug10) [2010] ZACT 63 (8 October 2010)

Lodestone Investment Holdings (Pty) Ltd v Candy Tops (Pty) Ltd (45/LM/Aug10) [2010] ZACT 63 (8 October 2010)

The Tribunal found that the activities of Lodestone and Candy Tops do not overlap, as Lodestone (through the SCB group) has no interests in firms that compete with Candy Tops in South Africa. The acquisition would not result in a substantial prevention or lessening of competition in any plausible market. Furthermore, the merging parties confirmed that no job losses would occur and no other public interest issues arise. Accordingly, the Tribunal approved the transaction without conditions.

Citation
[2010] ZACT 63
Parties
Applicant: Lodestone Investment Holdings (Pty) Ltd; Respondent: Candy Tops (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 October 2010
Case Number
45/LM/Aug10
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Merle Holden
Legal Topics
Merger Control, Substantial Prevention or Lessening of Competition, Public Interest, Sole Control Acquisition
Competition Law Merger Control Substantial Prevention or Lessening of Competition Public Interest Sole Control Acquisition

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Parties

Lodestone Investment Holdings (Pty) Ltd

Applicant

Candy Tops (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Does the proposed acquisition result in a substantial prevention or lessening of competition in any relevant market?
  2. 2 Are there any public interest concerns arising from the proposed transaction?
  3. 3 Is the acquisition subject to any conditions?

Ratio Decidendi

The Tribunal found that the activities of Lodestone and Candy Tops do not overlap, as Lodestone (through the SCB group) has no interests in firms that compete with Candy Tops in South Africa. The acquisition would not result in a substantial prevention or lessening of competition in any plausible market. Furthermore, the merging parties confirmed that no job losses would occur and no other public interest issues arise. Accordingly, the Tribunal approved the transaction without conditions.

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition of Candy Tops (Pty) Ltd by Lodestone Investment Holdings (Pty) Ltd is approved without conditions.