RCS Investment Holdings (Pty) Ltd v Massdiscounters, a division of Masstores (Pty) Ltd (30/LM/Apr08) [2008] ZACT 67; [2008] 2 CPLR 281 (CT) (21 August 2008)

RCS Investment Holdings (Pty) Ltd v Massdiscounters, a division of Masstores (Pty) Ltd (30/LM/Apr08) [2008] ZACT 67; [2008] 2 CPLR 281 (CT) (21 August 2008)

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in the market for unsecured credit. The market shares of the merging parties were minimal, and significant competitors such as major banks and retailers would remain active post-merger. The controllers of RCS, SBSA and Foschini, operate their own retail credit businesses independently, and the accretion of market share from the merger is negligible. No public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2008] ZACT 67
Parties
Applicant: RCS Investment Holdings (Pty) Ltd; Respondent: Massdiscounters, a division of Masstores (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 August 2008
Case Number
30/LM/Apr08
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, U Bhoola, M Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Unsecured Credit Market
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Unsecured Credit Market

Case Brief

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Parties

RCS Investment Holdings (Pty) Ltd

Applicant

Massdiscounters, a division of Masstores (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between RCS Investment Holdings (Pty) Ltd and the consumer credit business of Massdiscounters is likely to substantially prevent or lessen competition in the market for unsecured credit.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in the market for unsecured credit. The market shares of the merging parties were minimal, and significant competitors such as major banks and retailers would remain active post-merger. The controllers of RCS, SBSA and Foschini, operate their own retail credit businesses independently, and the accretion of market share from the merger is negligible. No public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between RCS Investment Holdings (Pty) Ltd and the consumer credit business of Massdiscounters is approved without conditions.