McCarthy (Pty) Ltd v Melrose Motor Investments (Pty) Ltd (LM036Jul21) [2021] ZACT 48 (23 August 2021)

McCarthy (Pty) Ltd v Melrose Motor Investments (Pty) Ltd (LM036Jul21) [2021] ZACT 48 (23 August 2021)

The Tribunal found that the merger would not substantially prevent or lessen competition in the relevant markets for new and used passenger and light commercial vehicles, nor in the market for scheduled maintenance and after-sales services. The merged entity's market shares would remain low, and it would be constrained by numerous alternative dealerships. No third parties raised concerns, and there would be no negative impact on employment or public interest factors. Existing arrangements for the supply of Nissan spare parts to independent service providers would continue. Accordingly, the merger was approved unconditionally.

Citation
[2021] ZACT 48
Parties
Applicant: McCarthy (Pty) Ltd; Respondent: Melrose Motor Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 August 2021
Case Number
LM036Jul21
Procedural Posture
Large Merger Review / Final Determination
Outcome
Merger unconditionally approved.
Judges
Enver Daniels, Thando Vilakazi, Imraan Valodia
Legal Topics
Large Merger Review, Horizontal Overlap, Public Interest, Market Share Analysis, Retail Motor Industry
Competition Law Large Merger Review Horizontal Overlap Public Interest Market Share Analysis Retail Motor Industry

Case Brief

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Parties

McCarthy (Pty) Ltd

Applicant

Melrose Motor Investments (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger would negatively affect employment or other public interest considerations under section 12A(3) of the Competition Act.
  3. 3 Whether the merger would result in any adverse effects on the supply of Nissan spare parts to independent service providers.

Ratio Decidendi

The Tribunal found that the merger would not substantially prevent or lessen competition in the relevant markets for new and used passenger and light commercial vehicles, nor in the market for scheduled maintenance and after-sales services. The merged entity's market shares would remain low, and it would be constrained by numerous alternative dealerships. No third parties raised concerns, and there would be no negative impact on employment or public interest factors. Existing arrangements for the supply of Nissan spare parts to independent service providers would continue. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between McCarthy (Pty) Ltd and Melrose Motor Investments (Pty) Ltd is approved without conditions.