Nestl� (South Africa) (Pty) Ltd and Dairymaid-Nestl� (Pty) Ltd (61/LM/Nov01) [2002] ZACT 4 (24 January 2002)

Nestl� (South Africa) (Pty) Ltd and Dairymaid-Nestl� (Pty) Ltd (61/LM/Nov01) [2002] ZACT 4 (24 January 2002)

The Tribunal found that the merger between Nestl� (South Africa) (Pty) Ltd and Dairymaid-Nestl� (Pty) Ltd does not result in any material change to the competitive landscape, as Nestl� South Africa has always been involved in the management of Dairymaid-Nestl� and there is no product overlap in the relevant ice-cream market. The Commission's analysis confirmed that the transaction will not substantially lessen or prevent competition, and no public interest or employment issues were raised. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2002] ZACT 4
Parties
Applicant: Nestl� (South Africa) (Pty) Ltd; Respondent: Dairymaid-Nestl� (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 January 2002
Case Number
61/LM/Nov01
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved unconditionally.
Judges
D. Lewis, N.M. Manoim, P. Maponya
Legal Topics
Large Merger Review, Substantial Lessening of Competition, Public Interest, Product Market Definition
Competition Law Commercial and Corporate Large Merger Review Substantial Lessening of Competition Public Interest Product Market Definition

Case Brief

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Parties

Nestl� (South Africa) (Pty) Ltd

Applicant

Dairymaid-Nestl� (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger will substantially lessen or prevent competition in the relevant ice-cream market.
  2. 2 Whether any public interest issues arise from the merger transaction.

Ratio Decidendi

The Tribunal found that the merger between Nestl� (South Africa) (Pty) Ltd and Dairymaid-Nestl� (Pty) Ltd does not result in any material change to the competitive landscape, as Nestl� South Africa has always been involved in the management of Dairymaid-Nestl� and there is no product overlap in the relevant ice-cream market. The Commission's analysis confirmed that the transaction will not substantially lessen or prevent competition, and no public interest or employment issues were raised. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Nestl� (South Africa) (Pty) Ltd and Dairymaid-Nestl� (Pty) Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued in terms of section 16(2)(a) of the Competition Act.