Project Oxygen Bidco Proprietary Limited v Long4Life Limited (LM178Feb22) [2022] ZACT 99 (17 May 2022)

Project Oxygen Bidco Proprietary Limited v Long4Life Limited (LM178Feb22) [2022] ZACT 99 (17 May 2022)

The Tribunal found that the merging parties' market shares are too low to have a significant effect on competition in the relevant market segments, which are characterized by strong competition from numerous competitors. The parties are not close competitors, and the vertical overlap does not raise foreclosure concerns. The Tribunal also considered third-party concerns about brand consolidation and found that the brands exclusively distributed by the merging parties are not within the same sporting codes, and the merger is unlikely to result in anti-competitive brand consolidation. Regarding public interest, the Tribunal concluded that the merger does not raise employment concerns, as...

Citation
[2022] ZACT 99
Parties
Applicant: Project Oxygen Bidco Proprietary Limited; Respondent: Long4Life Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 May 2022
Case Number
LM178Feb22
Procedural Posture
Large Merger Application / Reasons for Unconditional Approval Issued
Outcome
Merger unconditionally approved; no substantial prevention or lessening of competition or public interest concerns identified.
Judges
Yasmin Carrim, Enver Daniels, Thando Vilakazi
Legal Topics
Large Merger Review, Horizontal and Vertical Overlap, Public Interest Employment, Spread of Ownership, B Bbee Ownership, Brand Consolidation
Competition Law Commercial and Corporate Large Merger Review Horizontal and Vertical Overlap Public Interest Employment Spread of Ownership B Bbee Ownership Brand Consolidation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Project Oxygen Bidco Proprietary Limited

Applicant

Long4Life Limited

Respondent

Procedural Posture

Large Merger Application / Reasons for Unconditional Approval Issued

Legal Issues

  1. 1 Whether the proposed merger between Project Oxygen Bidco and Long4Life Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment and spread of ownership.
  3. 3 Whether the merger will result in anti-competitive brand consolidation.

Ratio Decidendi

The Tribunal found that the merging parties' market shares are too low to have a significant effect on competition in the relevant market segments, which are characterized by strong competition from numerous competitors. The parties are not close competitors, and the vertical overlap does not raise foreclosure concerns. The Tribunal also considered third-party concerns about brand consolidation and found that the brands exclusively distributed by the merging parties are not within the same sporting codes, and the merger is unlikely to result in anti-competitive brand consolidation. Regarding public interest, the Tribunal concluded that the merger does not raise employment concerns, as...

Court Disposition

Merger unconditionally approved; no substantial prevention or lessening of competition or public interest concerns identified.

Orders

  • The large merger between Project Oxygen Bidco Proprietary Limited and Long4Life Limited is unconditionally approved.
  • No conditions are imposed regarding employment or spread of ownership.