Masstores (Pty) Limited and Hentiq 2869 (Pty) Ltd / Rivonia Produce & Hardware (Pty) Limited (53/LM/Jul04) [2004] ZACT 54 (24 August 2004)

Masstores (Pty) Limited and Hentiq 2869 (Pty) Ltd / Rivonia Produce & Hardware (Pty) Limited (53/LM/Jul04) [2004] ZACT 54 (24 August 2004)

The Tribunal found that the relevant product market is the retail of building supplies, hardware, and related products, and the geographic market is at least regional (Gauteng), possibly national. The merged entity's market share would not exceed 11% in either market, and there are numerous other competitors. The transaction is unlikely to result in the substantial lessening or prevention of competition. No public interest concerns, such as job losses, were identified. Accordingly, the merger was approved unconditionally.

Citation
[2004] ZACT 54
Parties
Applicant: Masstores (Pty) Limited; Respondent: Hentiq 2869 (Pty) Ltd; Respondent: Rivonia Produce & Hardware (Pty) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 August 2004
Case Number
53/LM/Jul04
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved unconditionally.
Judges
David Lewis, Norman Manoim, Urmilla Bhoola
Legal Topics
Large Merger Review, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Market Share Analysis

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Masstores (Pty) Limited

Applicant

Hentiq 2869 (Pty) Ltd

Respondent

Rivonia Produce & Hardware (Pty) Limited

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Masstores, Hentiq, and Rivonia is likely to substantially lessen or prevent competition in the relevant market.
  2. 2 Whether the merger raises any public interest concerns, including potential job losses.
  3. 3 What is the relevant product and geographic market for assessing the competitive effects of the merger.

Ratio Decidendi

The Tribunal found that the relevant product market is the retail of building supplies, hardware, and related products, and the geographic market is at least regional (Gauteng), possibly national. The merged entity's market share would not exceed 11% in either market, and there are numerous other competitors. The transaction is unlikely to result in the substantial lessening or prevention of competition. No public interest concerns, such as job losses, were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Masstores (Pty) Limited, Hentiq 2869 (Pty) Ltd, and Rivonia Produce & Hardware (Pty) Limited is approved without conditions.