Mitsui & CO Ltd v ETC Group (Mauritius) Ltd (LM266Jan18) [2018] ZACT 19 (12 March 2018)

Mitsui & CO Ltd v ETC Group (Mauritius) Ltd (LM266Jan18) [2018] ZACT 19 (12 March 2018)

The Tribunal found that the proposed merger gives rise to a horizontal overlap in the national market for the wholesale of maize, but the post-merger market share and accretion are both less than 5%. The merged entity will continue to face competition from several other firms, and the Commission concluded that the transaction is unlikely to substantially prevent or lessen competition. The Tribunal concurred with this finding. Furthermore, the merger does not raise any public interest concerns, including employment. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2018] ZACT 19
Parties
Applicant: Mitsui & CO Ltd; Respondent: ETC Group (Mauritius) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 March 2018
Case Number
LM266Jan18
Procedural Posture
Merger Application / Approval
Outcome
The merger is approved unconditionally.
Judges
Norman Manoim, Medi Mokuena, Enver Daniels
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest
Competition Law Merger Control Horizontal Overlap Market Share Analysis Public Interest

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Parties

Mitsui & CO Ltd

Applicant

ETC Group (Mauritius) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Mitsui & CO Ltd and ETC Group (Mauritius) Ltd is likely to substantially prevent or lessen competition in the national market for the wholesale of maize.
  2. 2 Whether the merger raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed merger gives rise to a horizontal overlap in the national market for the wholesale of maize, but the post-merger market share and accretion are both less than 5%. The merged entity will continue to face competition from several other firms, and the Commission concluded that the transaction is unlikely to substantially prevent or lessen competition. The Tribunal concurred with this finding. Furthermore, the merger does not raise any public interest concerns, including employment. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction between Mitsui & CO Ltd and ETC Group (Mauritius) Ltd is approved unconditionally.