Main Street 1511 (Pty) Ltd v Roossenkal Foods Investment Holdings (Pty) Ltd (LM265Jan18) [2018] ZACT 18 (5 March 2018)

Main Street 1511 (Pty) Ltd v Roossenkal Foods Investment Holdings (Pty) Ltd (LM265Jan18) [2018] ZACT 18 (5 March 2018)

The Tribunal found that there is no horizontal overlap between the activities of the merging parties, as the Abraaj Group does not have interests in any KFC or other fast food retail operations in South Africa. The proposed transaction is therefore unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that the transaction would not result in any retrenchments or job losses, and no other public interest concerns were identified. The Tribunal agreed with the Competition Commission's assessment and approved the merger unconditionally.

Citation
[2018] ZACT 18
Parties
Applicant: Main Street 1511 (Pty) Ltd; Respondent: Roossenekal Foods Investment Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 March 2018
Case Number
LM265Jan18
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved unconditionally.
Judges
Andreas Wessels, Mondo Mazwai, Andiswa Ndoni
Legal Topics
Merger Notification, Substantial Lessening of Competition, Public Interest, Sale of Shares
Competition Law Commercial and Corporate Merger Notification Substantial Lessening of Competition Public Interest Sale of Shares

Case Brief

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Parties

Main Street 1511 (Pty) Ltd

Applicant

Roossenekal Foods Investment Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including retrenchments or job losses.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap between the activities of the merging parties, as the Abraaj Group does not have interests in any KFC or other fast food retail operations in South Africa. The proposed transaction is therefore unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that the transaction would not result in any retrenchments or job losses, and no other public interest concerns were identified. The Tribunal agreed with the Competition Commission's assessment and approved the merger unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.