Macsteel Services Centre (Pty) Ltd v Harvey Roofing Products (56/LM/MAY08) [2008] ZACT 66; [2008] 2 CPLR 250 (CT) (14 August 2008)

Macsteel Services Centre (Pty) Ltd v Harvey Roofing Products (56/LM/MAY08) [2008] ZACT 66; [2008] 2 CPLR 250 (CT) (14 August 2008)

The Tribunal found that the merger between Macsteel Services Centre and Harvey Roofing Products would not result in a substantial lessening or prevention of competition in any relevant market. The horizontal overlap in the market for pre-painted or textured steel sheeting is limited, with a combined post-merger market share of approximately 23%, which does not raise competition concerns. Although Harvey Roofing Products holds a significant share (55%) of the steel tile market, the presence of other competitors and low barriers to entry ensure continued competition. The Tribunal also considered potential vertical concerns, including customer and input foreclosure, but found that Harvey...

Citation
[2008] ZACT 66
Parties
Applicant: Macsteel Services Centre (Pty) Ltd; Respondent: Harvey Roofing Products
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 August 2008
Case Number
56/LM/MAY08
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally; no substantial lessening or prevention of competition found.
Judges
D Lewis, N Manoim, L Reyburn
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Market Share Analysis, Barriers to Entry
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationship Market Share Analysis Barriers to Entry

Case Brief

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Parties

Macsteel Services Centre (Pty) Ltd

Applicant

Harvey Roofing Products

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening or prevention of competition in any relevant market.
  2. 2 Whether there are horizontal or vertical competition concerns arising from the merger.
  3. 3 Whether there are public interest issues implicated by the transaction.

Ratio Decidendi

The Tribunal found that the merger between Macsteel Services Centre and Harvey Roofing Products would not result in a substantial lessening or prevention of competition in any relevant market. The horizontal overlap in the market for pre-painted or textured steel sheeting is limited, with a combined post-merger market share of approximately 23%, which does not raise competition concerns. Although Harvey Roofing Products holds a significant share (55%) of the steel tile market, the presence of other competitors and low barriers to entry ensure continued competition. The Tribunal also considered potential vertical concerns, including customer and input foreclosure, but found that Harvey...

Court Disposition

Merger approved unconditionally; no substantial lessening or prevention of competition found.

Orders

  • The merger between Macsteel Services Centre (Pty) Ltd and Harvey Roofing Products is approved without conditions.