NUMSA Investment Company (Pty) Ltd and Doves Group Holdings (Pty) Ltd (102/LM/Oct05) [2006] ZACT 8 (13 February 2006)

NUMSA Investment Company (Pty) Ltd and Doves Group Holdings (Pty) Ltd (102/LM/Oct05) [2006] ZACT 8 (13 February 2006)

The Tribunal found that the merger between NUMSA Investment Company and Doves Group Holdings does not result in any horizontal overlap and the vertical effects are limited. NUMSA Investment will offer Doves funeral policies to NUMSA Union members, but members retain the freedom to choose their undertaker. The transaction does not foreclose competitors or restrict market access, as NUMSA Union members are geographically dispersed and many are part of informal burial societies with established relationships with local undertakers. There are no significant public interest concerns. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and approved...

Citation
[2006] ZACT 8
Parties
Applicant: NUMSA Investment Company (Pty) Ltd; Respondent: Doves Group Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2006
Case Number
102/LM/Oct05
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
Y Carrim, N Manoim, M Mokuena
Legal Topics
Vertical Merger, Public Interest, Market Access, Funeral Services
Competition Law Commercial and Corporate Vertical Merger Public Interest Market Access Funeral Services

Case Brief

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Parties

NUMSA Investment Company (Pty) Ltd

Applicant

Doves Group Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the acquisition of Doves Group Holdings by NUMSA Investment Company will substantially prevent or lessen competition in the funeral services market.
  2. 2 Whether the transaction raises significant public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the merger between NUMSA Investment Company and Doves Group Holdings does not result in any horizontal overlap and the vertical effects are limited. NUMSA Investment will offer Doves funeral policies to NUMSA Union members, but members retain the freedom to choose their undertaker. The transaction does not foreclose competitors or restrict market access, as NUMSA Union members are geographically dispersed and many are part of informal burial societies with established relationships with local undertakers. There are no significant public interest concerns. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and approved...

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between NUMSA Investment Company (Pty) Ltd and Doves Group Holdings (Pty) Ltd is approved.
  • No conditions are imposed on the approval.