Roadway Logistics (Pty) Ltd and Roadway Transport (Pty) Ltd (90/LM/Oct00) [2000] ZACT 49 (18 December 2000)

Roadway Logistics (Pty) Ltd and Roadway Transport (Pty) Ltd (90/LM/Oct00) [2000] ZACT 49 (18 December 2000)

The Tribunal found that the joint venture between Roadway Logistics and Roadway Transport would not result in a substantial prevention or lessening of competition. The parties operate in distinct commodity markets—household goods and non-household goods—making their logistic services non-substitutable. The joint venture's market share in the household goods sub-market would be 7.3%, while Unitrans and Roadway Transport's shares in the broader logistics market are 4-5% and 0.4%, respectively. Given the lack of overlap and the presence of other competitors, the merger does not raise competition concerns. Furthermore, the transfer of employees will occur without changes to their terms and...

Citation
[2000] ZACT 49
Parties
Applicant: Roadway Logistics (Pty) Ltd; Respondent: Roadway Transport (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 December 2000
Case Number
90/LM/Oct00
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, D.R. Terblanche
Legal Topics
Merger Clearance, Market Definition, Public Interest Considerations, Joint Venture, Market Share Analysis
Competition Law Commercial and Corporate Merger Clearance Market Definition Public Interest Considerations Joint Venture Market Share Analysis

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Parties

Roadway Logistics (Pty) Ltd

Applicant

Roadway Transport (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed joint venture between Roadway Logistics (Pty) Ltd and Roadway Transport (Pty) Ltd raises competition concerns in the relevant product and geographic markets.
  2. 2 Whether the merger raises any public interest concerns under section 16(3) of the Competition Act.

Ratio Decidendi

The Tribunal found that the joint venture between Roadway Logistics and Roadway Transport would not result in a substantial prevention or lessening of competition. The parties operate in distinct commodity markets—household goods and non-household goods—making their logistic services non-substitutable. The joint venture's market share in the household goods sub-market would be 7.3%, while Unitrans and Roadway Transport's shares in the broader logistics market are 4-5% and 0.4%, respectively. Given the lack of overlap and the presence of other competitors, the merger does not raise competition concerns. Furthermore, the transfer of employees will occur without changes to their terms and...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Roadway Logistics (Pty) Ltd and Roadway Transport (Pty) Ltd is approved without conditions.
  • Employees of Roadway Transport will be transferred to Roadway Logistics on unchanged terms and conditions.