Pick 'n Pay Retailers (Pty) Ltd v Trio Belville (Pty) Ltd (LM242Mar15) [2015] ZACT 47 (3 June 2015)

Pick 'n Pay Retailers (Pty) Ltd v Trio Belville (Pty) Ltd (LM242Mar15) [2015] ZACT 47 (3 June 2015)

The Tribunal found that although the merged entity would have relatively high market shares in the retail sale of grocery and liquor products within a three kilometre radius of the target stores, sufficient competition remains from other retailers in both product markets. The vertical relationship between Pick 'n Pay Retailers and the target stores does not raise foreclosure concerns, as the majority of products are currently procured in-house and the transaction does not alter the market structure. The merging parties confirmed that there would be no adverse effect on employment, and no other public interest concerns were identified. Accordingly, the Tribunal concluded that the proposed...

Citation
[2015] ZACT 47
Parties
Applicant: Pick 'n Pay Retailers (Pty) Ltd; Respondent: Trio Belville (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 June 2015
Case Number
LM242Mar15
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Fiona Tregenna, Medi Mokuena
Legal Topics
Large Merger, Horizontal Overlap, Vertical Relationship, Public Interest, Market Definition
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Vertical Relationship Public Interest Market Definition

Case Brief

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Parties

Pick 'n Pay Retailers (Pty) Ltd

Applicant

Trio Belville (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the relevant product markets.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.
  3. 3 Whether any vertical foreclosure concerns arise from the relationship between the acquiring and target firms.

Ratio Decidendi

The Tribunal found that although the merged entity would have relatively high market shares in the retail sale of grocery and liquor products within a three kilometre radius of the target stores, sufficient competition remains from other retailers in both product markets. The vertical relationship between Pick 'n Pay Retailers and the target stores does not raise foreclosure concerns, as the majority of products are currently procured in-house and the transaction does not alter the market structure. The merging parties confirmed that there would be no adverse effect on employment, and no other public interest concerns were identified. Accordingly, the Tribunal concluded that the proposed...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Pick 'n Pay Retailers (Pty) Ltd and Trio Belville (Pty) Ltd is approved without conditions.