Main Street 1389 Proprietary Limited v Access Platforms Proprietary Limited (LM150Oct15) [2016] ZACT 2 (19 January 2016)

Main Street 1389 Proprietary Limited v Access Platforms Proprietary Limited (LM150Oct15) [2016] ZACT 2 (19 January 2016)

The Tribunal found that although there is a horizontal overlap between the business activities of Skyjacks (controlled by WACO, in which Ethos Fund VI holds a minority interest) and the Eazi Group (controlled by Access Platforms), the post-merger market share accretion does not significantly alter the market structure. The merged entity is unlikely to exercise market power due to the presence of several viable competitors and low barriers to entry. The vertical relationship between the Eazi Group and Skyjacks was not considered a true vertical integration, as all suppliers import equipment and alternative suppliers are available. No adverse public interest concerns, including employment...

Citation
[2016] ZACT 2
Parties
Applicant: Main Street 1389 Proprietary Limited; Respondent: Access Platforms Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 January 2016
Case Number
LM150Oct15
Procedural Posture
Merger Control / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Mondo Mazwai, Yasmin Carrim, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationships, Market Power, Public Interest, Barriers to Entry
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationships Market Power Public Interest Barriers to Entry

Case Brief

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Parties

Main Street 1389 Proprietary Limited

Applicant

Access Platforms Proprietary Limited

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap between the business activities of Skyjacks (controlled by WACO, in which Ethos Fund VI holds a minority interest) and the Eazi Group (controlled by Access Platforms), the post-merger market share accretion does not significantly alter the market structure. The merged entity is unlikely to exercise market power due to the presence of several viable competitors and low barriers to entry. The vertical relationship between the Eazi Group and Skyjacks was not considered a true vertical integration, as all suppliers import equipment and alternative suppliers are available. No adverse public interest concerns, including employment...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Main Street 1389 Proprietary Limited and Access Platforms Proprietary Limited is approved without conditions.