Main Street 112 (Pty) Ltd and Harvey Fibreglass Holdings (Pty) Ltd (22/LM/May03) [2003] ZACT 32 (9 June 2003)

Main Street 112 (Pty) Ltd and Harvey Fibreglass Holdings (Pty) Ltd (22/LM/May03) [2003] ZACT 32 (9 June 2003)

The Tribunal found that the merger between Main Street 112 (Pty) Ltd and Harvey Fibreglass Holdings (Pty) Ltd would not substantially prevent or lessen competition in either the upstream market for the manufacture of resins or the downstream market for the distribution of resins and complementary products. The parties operate in a vertical manufacturer/distributor relationship with no overlap in activities, and the exclusive distribution arrangement does not result in input or customer foreclosure. The Commission's investigation confirmed that competitors were not concerned and that alternative sources for complementary products exist. The merger does not raise public interest concerns,...

Citation
[2003] ZACT 32
Parties
Applicant: Main Street 112 (Pty) Ltd; Respondent: Harvey Fibreglass Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 June 2003
Case Number
22/LM/May03
Procedural Posture
Large Merger Review / Merger Approval
Outcome
Merger approved unconditionally.
Judges
P. Maponya, U. Bhoola, L. Reyburn
Legal Topics
Vertical Merger, Market Concentration, Foreclosure, Public Interest, Merger Clearance
Competition Law Commercial and Corporate Vertical Merger Market Concentration Foreclosure Public Interest Merger Clearance

Case Brief

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Parties

Main Street 112 (Pty) Ltd

Applicant

Harvey Fibreglass Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Approval

Legal Issues

  1. 1 Whether the proposed vertical merger between Main Street 112 (Pty) Ltd and Harvey Fibreglass Holdings (Pty) Ltd will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the merger raises any public interest concerns, including employment effects.
  3. 3 Whether the exclusive distribution arrangement between Cray Valley and Harvey leads to input or customer foreclosure.

Ratio Decidendi

The Tribunal found that the merger between Main Street 112 (Pty) Ltd and Harvey Fibreglass Holdings (Pty) Ltd would not substantially prevent or lessen competition in either the upstream market for the manufacture of resins or the downstream market for the distribution of resins and complementary products. The parties operate in a vertical manufacturer/distributor relationship with no overlap in activities, and the exclusive distribution arrangement does not result in input or customer foreclosure. The Commission's investigation confirmed that competitors were not concerned and that alternative sources for complementary products exist. The merger does not raise public interest concerns,...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Main Street 112 (Pty) Ltd and Harvey Fibreglass Holdings (Pty) Ltd is approved without conditions.
  • No order as to costs.