RMB Ventures Seven (Pty) Ltd v Gemeli (Pty) Ltd (LM279Feb18) [2018] ZACT 42 (8 May 2018)

RMB Ventures Seven (Pty) Ltd v Gemeli (Pty) Ltd (LM279Feb18) [2018] ZACT 42 (8 May 2018)

The Tribunal found that the proposed merger between RMB Ventures Seven (Pty) Ltd and Gemelli (Pty) Ltd would not substantially prevent or lessen competition in any relevant market. The horizontal overlaps identified by the Commission were not significant due to differentiation in product offerings and target markets. Studio 88 and Clothing Junction serve different LSM groups and sell different types of clothing, while Rexview and the Gemelli Group manufacture and supply footwear to distinct consumer segments. The Tribunal also accepted that there would be no adverse employment effects, as confirmed by the merging parties and not contested by the trade union SACTWU after further...

Citation
[2018] ZACT 42
Parties
Applicant: RMB Ventures Seven (Pty) Ltd; Respondent: Gemelli (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 May 2018
Case Number
LM279Feb18
Procedural Posture
Merger Application / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Enver Daniels, Andreas Wessels
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Employment Effects
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Employment Effects

Case Brief

Summary, issues, holding and outcome

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Parties

RMB Ventures Seven (Pty) Ltd

Applicant

Gemelli (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between RMB Ventures Seven (Pty) Ltd and Gemelli (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that the proposed merger between RMB Ventures Seven (Pty) Ltd and Gemelli (Pty) Ltd would not substantially prevent or lessen competition in any relevant market. The horizontal overlaps identified by the Commission were not significant due to differentiation in product offerings and target markets. Studio 88 and Clothing Junction serve different LSM groups and sell different types of clothing, while Rexview and the Gemelli Group manufacture and supply footwear to distinct consumer segments. The Tribunal also accepted that there would be no adverse employment effects, as confirmed by the merging parties and not contested by the trade union SACTWU after further...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between RMB Ventures Seven (Pty) Ltd and Gemelli (Pty) Ltd is approved without conditions.