Reunert Ltd and African Cables Ltd (59/LM/Aug04) [2004] ZACT 60 (13 September 2004)

Reunert Ltd and African Cables Ltd (59/LM/Aug04) [2004] ZACT 60 (13 September 2004)

The Tribunal found that there is no product overlap between Reunert and African Cables, as their respective businesses operate in distinct segments of the electrical and telecommunication cable markets. African Cables focuses on insulated electrical power cables, while Reunert manufactures low voltage switchgear and telecommunication cables. The market shares of competitors and imports indicate a competitive environment, with Aberdare Cables holding 43% and African Cables 28%, and imports accounting for 16%. The restraint imposed on Pirelli prevents it from competing in the South African market for three years, mitigating any risk of anti-competitive information transfer. The Tribunal...

Citation
[2004] ZACT 60
Parties
Applicant: Reunert Ltd; Respondent: African Cables Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 September 2004
Case Number
59/LM/Aug04
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, L Reyburn, M Mokuena
Legal Topics
Large Merger Review, Market Share Analysis, Restraint of Trade, Public Interest Considerations
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Restraint of Trade Public Interest Considerations

Case Brief

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Parties

Reunert Ltd

Applicant

African Cables Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially lessen or prevent competition in the relevant market.
  2. 2 Whether the transaction raises any substantial public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that there is no product overlap between Reunert and African Cables, as their respective businesses operate in distinct segments of the electrical and telecommunication cable markets. African Cables focuses on insulated electrical power cables, while Reunert manufactures low voltage switchgear and telecommunication cables. The market shares of competitors and imports indicate a competitive environment, with Aberdare Cables holding 43% and African Cables 28%, and imports accounting for 16%. The restraint imposed on Pirelli prevents it from competing in the South African market for three years, mitigating any risk of anti-competitive information transfer. The Tribunal...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Reunert Ltd and African Cables Ltd is approved without conditions.