MSC Mediterranean Shipping Company S.A. v Bollore Africa Logistics SAS (LM012APR22) [2022] ZACT 31 (25 July 2022)

MSC Mediterranean Shipping Company S.A. v Bollore Africa Logistics SAS (LM012APR22) [2022] ZACT 31 (25 July 2022)

The Tribunal found that the proposed merger between SAS Lux (MSC Group) and Bollore Africa Logistics SAS would not substantially prevent or lessen competition in any relevant market. The Commission's assessment showed that the parties' activities overlap horizontally and vertically, but the merged entity would continue to face significant competition from other container shipping companies. The Tribunal accepted that input and customer foreclosure were unlikely, given the market shares and competitive dynamics. No third parties raised concerns, and the merger would not negatively affect employment or the spread of ownership. The Tribunal concluded that there were no competition or public...

Citation
[2022] ZACT 31
Parties
Applicant: MSC Mediterranean Shipping Company S.A.; Respondent: Bollore Africa Logistics SAS
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 July 2022
Case Number
LM012APR22
Procedural Posture
Large Merger Review / Final Approval
Outcome
Merger approved unconditionally.
Judges
Imraan I. Valodia, Andiswa Ndoni, Fiona Tregenna
Legal Topics
Merger Control, Horizontal Overlap, Vertical Overlap, Input Foreclosure, Customer Foreclosure, Public Interest
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Overlap Input Foreclosure Customer Foreclosure Public Interest

Case Brief

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Parties

MSC Mediterranean Shipping Company S.A.

Applicant

Bollore Africa Logistics SAS

Respondent

Procedural Posture

Large Merger Review / Final Approval

Legal Issues

  1. 1 Whether the proposed merger between SAS Lux (MSC Group) and Bollore Africa Logistics SAS is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises public interest concerns, including effects on employment and the spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger between SAS Lux (MSC Group) and Bollore Africa Logistics SAS would not substantially prevent or lessen competition in any relevant market. The Commission's assessment showed that the parties' activities overlap horizontally and vertically, but the merged entity would continue to face significant competition from other container shipping companies. The Tribunal accepted that input and customer foreclosure were unlikely, given the market shares and competitive dynamics. No third parties raised concerns, and the merger would not negatively affect employment or the spread of ownership. The Tribunal concluded that there were no competition or public...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between SAS Lux (MSC Group) and Bollore Africa Logistics SAS is approved unconditionally.
  • No conditions are imposed regarding employment or public interest factors.