Mr Price Group Ltd v K2018509367 (South Africa) (Pty) Ltd ("Yuppiechef") (LM014Apr21) [2021] ZACT 53 (19 July 2021)

Mr Price Group Ltd v K2018509367 (South Africa) (Pty) Ltd ("Yuppiechef") (LM014Apr21) [2021] ZACT 53 (19 July 2021)

The Tribunal found that the merger between Mr Price Group Ltd and Yuppiechef would not substantially lessen or prevent competition in any relevant market. The merging parties' post-merger market shares would remain low, and they would continue to face significant competition from other market participants. The Tribunal accepted that the concerns raised by third parties regarding dominance and exclusivity were not merger-specific and that the merged entity would not meet the statutory definition of a dominant firm. The Tribunal also considered public interest factors, including employment and local procurement, and found no negative impact. The acquisition would result in a greater spread...

Citation
[2021] ZACT 53
Parties
Applicant: Mr Price Group Ltd; Respondent: K2018509367 (South Africa) (Pty) Ltd ("Yuppiechef")
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 July 2021
Case Number
LM014Apr21
Procedural Posture
Merger Application / Final Determination
Outcome
Merger approved unconditionally.
Judges
E Daniels, Y Carrim, A Ndoni
Legal Topics
Large Merger, Horizontal Overlap, Vertical Overlap, Public Interest, Market Power, Section 12a Competition Act
Competition Law Large Merger Horizontal Overlap Vertical Overlap Public Interest Market Power Section 12a Competition Act

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Parties

Mr Price Group Ltd

Applicant

K2018509367 (South Africa) (Pty) Ltd ("Yuppiechef")

Respondent

Procedural Posture

Merger Application / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Mr Price Group Ltd and Yuppiechef is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether the merger raises public interest concerns under section 12A(3) of the Competition Act, including effects on employment, local procurement, and ownership spread.
  3. 3 Whether the merger will result in foreclosure or dominance in the homeware market.

Ratio Decidendi

The Tribunal found that the merger between Mr Price Group Ltd and Yuppiechef would not substantially lessen or prevent competition in any relevant market. The merging parties' post-merger market shares would remain low, and they would continue to face significant competition from other market participants. The Tribunal accepted that the concerns raised by third parties regarding dominance and exclusivity were not merger-specific and that the merged entity would not meet the statutory definition of a dominant firm. The Tribunal also considered public interest factors, including employment and local procurement, and found no negative impact. The acquisition would result in a greater spread...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Mr Price Group Ltd and Yuppiechef is approved in terms of section 16(2)(a) of the Competition Act.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).