MB Technologies Investments (Pty) Ltd v Ingram Micro (Pty) Ltd (25/LM/May10) [2010] ZACT 69; [2010] 2 CPLR 334 (CT) (19 October 2010)

MB Technologies Investments (Pty) Ltd v Ingram Micro (Pty) Ltd (25/LM/May10) [2010] ZACT 69; [2010] 2 CPLR 334 (CT) (19 October 2010)

The Tribunal found that the merger between MB Technologies Investments (Pty) Ltd and Ingram Micro (Pty) Ltd would not result in a substantial prevention or lessening of competition in any of the relevant markets. The market share accretion post-merger is negligible, approximately 1%, and there are numerous other competitors in the wholesale distribution of desktop, laptop, and network equipment. The IT distribution market is highly competitive, and customers possess countervailing power. Barriers to entry, such as access to vendor agencies, are structural and not a result of the merger. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2010] ZACT 69
Parties
Applicant: MB Technologies Investments (Pty) Ltd; Respondent: Ingram Micro (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 October 2010
Case Number
25/LM/May10
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Andreas Wessels, Mbuyiseli Madlanga
Legal Topics
Horizontal Merger, Market Share Analysis, Barriers to Entry, Sole Control Acquisition
Competition Law Commercial and Corporate Horizontal Merger Market Share Analysis Barriers to Entry Sole Control Acquisition

Case Brief

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Parties

MB Technologies Investments (Pty) Ltd

Applicant

Ingram Micro (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether there are any public interest concerns arising from the proposed transaction.

Ratio Decidendi

The Tribunal found that the merger between MB Technologies Investments (Pty) Ltd and Ingram Micro (Pty) Ltd would not result in a substantial prevention or lessening of competition in any of the relevant markets. The market share accretion post-merger is negligible, approximately 1%, and there are numerous other competitors in the wholesale distribution of desktop, laptop, and network equipment. The IT distribution market is highly competitive, and customers possess countervailing power. Barriers to entry, such as access to vendor agencies, are structural and not a result of the merger. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between MB Technologies Investments (Pty) Ltd and Ingram Micro (Pty) Ltd is approved without conditions.