Masstores (Pty) Ltd and Masana Limited & MGS Handy House (Pty) Ltd (93/LM/Dec02) [2003] ZACT 20 (1 April 2003)

Masstores (Pty) Ltd and Masana Limited & MGS Handy House (Pty) Ltd (93/LM/Dec02) [2003] ZACT 20 (1 April 2003)

The Tribunal found that although there is a functional product overlap between Masstores and Builder's Warehouse in certain product categories, the overlap is limited and does not result in the parties controlling a significant share of any relevant market, either nationally or within Gauteng. The parties face competition from well-established specialized firms and large retail stores. The transaction will not substantially alter competition in the relevant markets. Furthermore, the merger will not result in any job losses and may positively affect employment. No other public interest issues arise. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2003] ZACT 20
Parties
Applicant: Masstores (Pty) Ltd; Respondent: Masana Limited; Respondent: MGS Handy House (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 April 2003
Case Number
93/LM/Dec02
Procedural Posture
Large Merger / Merger Clearance Approval
Outcome
Merger unconditionally approved.
Judges
N. Manoim, D. Lewis, P. Maponya
Legal Topics
Merger Clearance, Market Definition, Public Interest, Product Overlap
Competition Law Merger Clearance Market Definition Public Interest Product Overlap

Case Brief

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Parties

Masstores (Pty) Ltd

Applicant

Masana Limited

Respondent

MGS Handy House (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance Approval

Legal Issues

  1. 1 Whether the merger between Masstores and Masana & MGS would substantially lessen competition in any relevant product market.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that although there is a functional product overlap between Masstores and Builder's Warehouse in certain product categories, the overlap is limited and does not result in the parties controlling a significant share of any relevant market, either nationally or within Gauteng. The parties face competition from well-established specialized firms and large retail stores. The transaction will not substantially alter competition in the relevant markets. Furthermore, the merger will not result in any job losses and may positively affect employment. No other public interest issues arise. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Masstores (Pty) Ltd and Masana Limited & MGS Handy House (Pty) Ltd is approved without conditions.