Pick n Pay Retailers (Pty) Ltd v Pick n Pay Douglasdale Family Supermarket & Liquor Store (LM114Sep22) [2022] ZACT 90; [2024] 1 CPLR 9 (CT) (15 December 2022)

Pick n Pay Retailers (Pty) Ltd v Pick n Pay Douglasdale Family Supermarket & Liquor Store (LM114Sep22) [2022] ZACT 90; [2024] 1 CPLR 9 (CT) (15 December 2022)

The Tribunal found that the proposed merger between Pick n Pay Retailers and Pick n Pay Douglasdale Family Supermarket & Liquor Store does not raise competition concerns in the local markets for grocery and liquor retail, as sufficient competitors remain and the merged entity's market share is not dominant. The vertical relationship between the parties is pre-existing and does not give rise to foreclosure risks. No adverse employment effects or retrenchments will result from the transaction, and HDP ownership in the target store will increase post-merger. Although the dtic raised concerns about barriers to entry for HDPs and small/medium businesses, the Tribunal accepted the merging...

Citation
[2022] ZACT 90
Parties
Applicant: Pick n Pay Retailers (Pty) Ltd; Respondent: Pick n Pay Douglasdale Family Supermarket & Liquor Store
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 December 2022
Case Number
LM114Sep22
Procedural Posture
Merger Control / Reasons for Decision
Outcome
Merger unconditionally approved; no substantial prevention or lessening of competition or adverse public interest effects found.
Judges
T Vilakazi, Y Carrim, S Goga
Legal Topics
Merger Control, Horizontal Overlap, Vertical Overlap, Public Interest, Hdp Ownership, Employment Effects
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Overlap Public Interest Hdp Ownership Employment Effects

Case Brief

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Parties

Pick n Pay Retailers (Pty) Ltd

Applicant

Pick n Pay Douglasdale Family Supermarket & Liquor Store

Respondent

Procedural Posture

Merger Control / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises public interest concerns, including effects on employment and HDP ownership.
  3. 3 Whether the merger creates barriers to entry for HDPs and small/medium businesses.

Ratio Decidendi

The Tribunal found that the proposed merger between Pick n Pay Retailers and Pick n Pay Douglasdale Family Supermarket & Liquor Store does not raise competition concerns in the local markets for grocery and liquor retail, as sufficient competitors remain and the merged entity's market share is not dominant. The vertical relationship between the parties is pre-existing and does not give rise to foreclosure risks. No adverse employment effects or retrenchments will result from the transaction, and HDP ownership in the target store will increase post-merger. Although the dtic raised concerns about barriers to entry for HDPs and small/medium businesses, the Tribunal accepted the merging...

Court Disposition

Merger unconditionally approved; no substantial prevention or lessening of competition or adverse public interest effects found.

Orders

  • The large merger between Pick n Pay Retailers (Pty) Ltd and Pick n Pay Douglasdale Family Supermarket & Liquor Store is unconditionally approved.
  • No conditions are imposed regarding employment or HDP ownership.