OTK Agri Products Trading (a division of OTK Limited) and Farm Feed Services (a division of Afribrand Trading (Pty) Limited) (11/LM/Feb02) [2002] ZACT 20 (10 April 2002)

OTK Agri Products Trading (a division of OTK Limited) and Farm Feed Services (a division of Afribrand Trading (Pty) Limited) (11/LM/Feb02) [2002] ZACT 20 (10 April 2002)

The Tribunal found that, regardless of whether the relevant market is defined broadly as the trading of grains and oilseeds or narrowly as the six product markets identified by the Commission, the post-merger market shares and concentration levels are moderate and do not raise competition concerns. The Tribunal noted the lack of evidence supporting the merging parties' broad market definition but concluded that even on the narrowest market definition, no competition issues arise. Public interest concerns, specifically employment, were addressed: the merger resulted in the preservation of jobs due to the liquidation of the target firm, with only one employee unable to find alternative...

Citation
[2002] ZACT 20
Parties
Applicant: OTK Agri Products Trading (a division of OTK Limited); Respondent: Farm Feed Services (a division of Afribrand Trading (Pty) Limited)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 April 2002
Case Number
11/LM/Feb02
Procedural Posture
Large Merger / Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, S. Zilwa, D.H. Lewis
Legal Topics
Merger Review, Market Definition, Public Interest, Employment Effects
Competition Law Merger Review Market Definition Public Interest Employment Effects

Case Brief

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Parties

OTK Agri Products Trading (a division of OTK Limited)

Applicant

Farm Feed Services (a division of Afribrand Trading (Pty) Limited)

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the merger between OTK Agri Products Trading and Farm Feed Services is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether there are significant public interest concerns, particularly regarding employment, arising from the merger.

Ratio Decidendi

The Tribunal found that, regardless of whether the relevant market is defined broadly as the trading of grains and oilseeds or narrowly as the six product markets identified by the Commission, the post-merger market shares and concentration levels are moderate and do not raise competition concerns. The Tribunal noted the lack of evidence supporting the merging parties' broad market definition but concluded that even on the narrowest market definition, no competition issues arise. Public interest concerns, specifically employment, were addressed: the merger resulted in the preservation of jobs due to the liquidation of the target firm, with only one employee unable to find alternative...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between OTK Agri Products Trading and Farm Feed Services is approved without conditions.