Masscash Holdings (Pty) Ltd v 13 Score Supermarket Stores (49/LM/Jun09) [2009] ZACT 64 (25 November 2009)

Masscash Holdings (Pty) Ltd v 13 Score Supermarket Stores (49/LM/Jun09) [2009] ZACT 64 (25 November 2009)

The Tribunal found that the post-merger market shares of the merging parties in the affected areas (Seshego and New Cross Roads) were low (3.3% and 0.57% respectively), and that significant competitors remained in the market. The evidence did not support a finding that the merger would substantially lessen or prevent competition. Furthermore, no significant public interest concerns were raised by the transaction. The rationale for the disposal of the Score Supermarkets could not be verified due to lack of documentation, but this did not affect the competition analysis. Accordingly, the Tribunal approved the merger.

Citation
[2009] ZACT 64
Parties
Applicant: Masscash Holdings (Pty) Ltd; Respondent: 13 Score Supermarket Stores; Respondent: Pick n Pay Retailers (Pty) Ltd and/or Score Supermarkets (Trading) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 November 2009
Case Number
49/LM/Jun09
Procedural Posture
Merger Control / Tribunal Approval of Merger
Outcome
Merger approved; no substantial lessening of competition or public interest concerns identified.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Merger Control, Retail Market Overlap, Public Interest, Market Share Analysis
Competition Law Merger Control Retail Market Overlap Public Interest Market Share Analysis

Case Brief

Summary, issues, holding and outcome

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Parties

Masscash Holdings (Pty) Ltd

Applicant

13 Score Supermarket Stores

Respondent

Pick n Pay Retailers (Pty) Ltd and/or Score Supermarkets (Trading) (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval of Merger

Legal Issues

  1. 1 Whether the proposed acquisition would substantially lessen or prevent competition in the relevant markets.
  2. 2 Whether the transaction raises any significant public interest concerns.
  3. 3 Whether the rationale for the disposal of the Score Supermarkets is valid.

Ratio Decidendi

The Tribunal found that the post-merger market shares of the merging parties in the affected areas (Seshego and New Cross Roads) were low (3.3% and 0.57% respectively), and that significant competitors remained in the market. The evidence did not support a finding that the merger would substantially lessen or prevent competition. Furthermore, no significant public interest concerns were raised by the transaction. The rationale for the disposal of the Score Supermarkets could not be verified due to lack of documentation, but this did not affect the competition analysis. Accordingly, the Tribunal approved the merger.

Court Disposition

Merger approved; no substantial lessening of competition or public interest concerns identified.

Orders

  • The acquisition by Masscash Holdings (Pty) Ltd of the 13 Score Supermarkets is approved.