NA CO Ltd and Nissan Diesel Motor Company (28/LM/Mar07) [2007] ZACT 38; [2007] 2 CPLR 365 (CT) (30 May 2007)

NA CO Ltd and Nissan Diesel Motor Company (28/LM/Mar07) [2007] ZACT 38; [2007] 2 CPLR 365 (CT) (30 May 2007)

The Tribunal found that the proposed transaction results in horizontal overlap in the sale and distribution of commercial vehicles and buses in South Africa. However, in each relevant market, the combined post-merger market shares of the merging parties were relatively low, and the increments in market shares and changes in the Herfindahl-Hirschman Index (HHI) were insignificant. The merging parties would continue to face strong, effective competitors such as Toyota, Tata, DaimlerChrysler, MAN, and others. The Commission's investigation revealed no serious competition concerns, and there were no public interest issues. Accordingly, the Tribunal concluded that the transaction would not...

Citation
[2007] ZACT 38
Parties
Applicant: NA CO Ltd; Respondent: Nissan Diesel Motor Company
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 May 2007
Case Number
28/LM/Mar07
Procedural Posture
Merger Control / Merger Clearance
Outcome
Merger approved unconditionally; no substantial lessening or prevention of competition found.
Judges
D Lewis, Y Carrim, Norman Manoim
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Market Share Analysis, Public Interest, Competition Concerns
Competition Law Merger Control Horizontal Overlap Market Definition Market Share Analysis Public Interest Competition Concerns

Case Brief

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Parties

NA CO Ltd

Applicant

Nissan Diesel Motor Company

Respondent

Procedural Posture

Merger Control / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between NA CO Ltd and Nissan Diesel Motor Company will substantially lessen or prevent competition in the relevant South African markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed transaction results in horizontal overlap in the sale and distribution of commercial vehicles and buses in South Africa. However, in each relevant market, the combined post-merger market shares of the merging parties were relatively low, and the increments in market shares and changes in the Herfindahl-Hirschman Index (HHI) were insignificant. The merging parties would continue to face strong, effective competitors such as Toyota, Tata, DaimlerChrysler, MAN, and others. The Commission's investigation revealed no serious competition concerns, and there were no public interest issues. Accordingly, the Tribunal concluded that the transaction would not...

Court Disposition

Merger approved unconditionally; no substantial lessening or prevention of competition found.

Orders

  • The merger between NA CO Ltd and Nissan Diesel Motor Company is approved unconditionally.
  • No conditions are imposed on the parties.