Porsche Automobil Holding SE v Volkswagen AG (72/LM/Jul08) [2008] ZACT 71; [2008] 2 CPLR 270 (CT) (10 September 2008)

Porsche Automobil Holding SE v Volkswagen AG (72/LM/Jul08) [2008] ZACT 71; [2008] 2 CPLR 270 (CT) (10 September 2008)

The Tribunal found that, although there is an overlap in the activities of Porsche SE and Volkswagen AG in the supply of motor vehicles, the post-merger market shares in the identified relevant markets would not result in a substantial prevention or lessening of competition. In the market for large SUVs, the merged entity would have a low market share and face strong competition from established players. In the market for standard sports cars and exotics, although the merged entity's market share would be high, market shares are highly volatile and subject to significant shifts with the introduction of new models. In the market for premium sports cars, the merged entity would continue to...

Citation
[2008] ZACT 71
Parties
Applicant: Porsche Automobil Holding SE; Respondent: Volkswagen AG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 September 2008
Case Number
72/LM/Jul08
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Share Analysis

Case Brief

Summary, issues, holding and outcome

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Parties

Porsche Automobil Holding SE

Applicant

Volkswagen AG

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed acquisition by Porsche Automobil Holding SE of a controlling interest in Volkswagen AG would substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that, although there is an overlap in the activities of Porsche SE and Volkswagen AG in the supply of motor vehicles, the post-merger market shares in the identified relevant markets would not result in a substantial prevention or lessening of competition. In the market for large SUVs, the merged entity would have a low market share and face strong competition from established players. In the market for standard sports cars and exotics, although the merged entity's market share would be high, market shares are highly volatile and subject to significant shifts with the introduction of new models. In the market for premium sports cars, the merged entity would continue to...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Porsche Automobil Holding SE and Volkswagen AG is approved without conditions.