RO Metrics Trading (Pty) Ltd v The passenger vehicle dealership business and related assets of Auto Motorsport (Pty) Ltd trading as Leo Haese Centurion (LM008Apr19) [2019] ZACT 62 (2 October 2019)

RO Metrics Trading (Pty) Ltd v The passenger vehicle dealership business and related assets of Auto Motorsport (Pty) Ltd trading as Leo Haese Centurion (LM008Apr19) [2019] ZACT 62 (2 October 2019)

The Tribunal found that the proposed merger resulted in horizontal overlaps in several markets, including the retail of new and used passenger vehicles, sale of aftermarket parts, and provision of aftersales services. In all assessed markets, the post-merger market shares and accretions were low, and sufficient competition remained from alternative dealerships and brands. The Tribunal accepted the Commission's market definitions and analysis, noting that intra-brand competition would not be significantly affected, as the merged entity would own only a small proportion of BMW dealerships in the relevant geographic area. Regarding public interest, the Tribunal found that the merger would...

Citation
[2019] ZACT 62
Parties
Applicant: RO Metrics Trading (Pty) Ltd; Respondent: The passenger vehicle dealership business and related assets of Auto Motorsport (Pty) Ltd trading as Leo Haese Centurion
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 October 2019
Case Number
LM008Apr19
Procedural Posture
Merger Application / Approval and Reasons
Outcome
The proposed merger is approved unconditionally.
Judges
Mondo Mazwai, Yasmin Carrim, Enver Daniels
Legal Topics
Horizontal Merger, Market Share Analysis, Public Interest, Supplier Contracts, Aftermarket Parts, Dealer Network Expansion
Competition Law Horizontal Merger Market Share Analysis Public Interest Supplier Contracts Aftermarket Parts Dealer Network Expansion

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 3 Authorities cited 3 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

RO Metrics Trading (Pty) Ltd

Applicant

The passenger vehicle dealership business and related assets of Auto Motorsport (Pty) Ltd trading as Leo Haese Centurion

Respondent

Procedural Posture

Merger Application / Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any adverse public interest concerns, particularly regarding historically disadvantaged suppliers.

Ratio Decidendi

The Tribunal found that the proposed merger resulted in horizontal overlaps in several markets, including the retail of new and used passenger vehicles, sale of aftermarket parts, and provision of aftersales services. In all assessed markets, the post-merger market shares and accretions were low, and sufficient competition remained from alternative dealerships and brands. The Tribunal accepted the Commission's market definitions and analysis, noting that intra-brand competition would not be significantly affected, as the merged entity would own only a small proportion of BMW dealerships in the relevant geographic area. Regarding public interest, the Tribunal found that the merger would...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between RO Metrics Trading (Pty) Ltd and the passenger vehicle dealership business and related assets of Auto Motorsport (Pty) Ltd trading as Leo Haese Centurion is approved without conditions.