RTT Group (Pty) Ltd v Courierit SA (Pty) Ltd and Another (LM105Aug15) [2015] ZACT 120; [2015] 2 CPLR 668 (CT) (15 October 2015)

RTT Group (Pty) Ltd v Courierit SA (Pty) Ltd and Another (LM105Aug15) [2015] ZACT 120; [2015] 2 CPLR 668 (CT) (15 October 2015)

The Tribunal found that the proposed merger between RTT Group and the target firms, Courierit and Warehouseit, would not substantially prevent or lessen competition in the national markets for courier and warehousing services. The merged entity's market shares would remain modest, and significant competitors would continue to operate in both markets. The Tribunal accepted the Commission's assessment that vertical relationships and cross-directorships posed risks of information sharing, which could facilitate coordination among competitors. To address these risks, the Tribunal imposed conditions prohibiting PIC-appointed directors from serving on boards of competing portfolio companies and...

Citation
[2015] ZACT 120
Parties
Applicant: RTT Group (Pty) Ltd; Respondent: Courierit SA (Pty) Ltd; Respondent: Warehouseit (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 October 2015
Case Number
LM105Aug15
Procedural Posture
Merger Application / Conditional Approval
Outcome
Merger conditionally approved subject to the conditions set out in Annexure A.
Judges
Yasmin Carrim, Mondo Mazwai, Medi Mokuena
Legal Topics
Merger Control, Cross Directorships, Information Sharing, Public Interest Employment, Subcontractor Protection
Competition Law Commercial and Corporate Merger Control Cross Directorships Information Sharing Public Interest Employment Subcontractor Protection

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Parties

RTT Group (Pty) Ltd

Applicant

Courierit SA (Pty) Ltd

Respondent

Warehouseit (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Conditional Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the national markets for courier and warehousing services.
  2. 2 Whether the merger raises public interest concerns, particularly regarding employment and subcontractor arrangements.
  3. 3 Whether cross-directorships and information sharing between competitors would arise post-merger.

Ratio Decidendi

The Tribunal found that the proposed merger between RTT Group and the target firms, Courierit and Warehouseit, would not substantially prevent or lessen competition in the national markets for courier and warehousing services. The merged entity's market shares would remain modest, and significant competitors would continue to operate in both markets. The Tribunal accepted the Commission's assessment that vertical relationships and cross-directorships posed risks of information sharing, which could facilitate coordination among competitors. To address these risks, the Tribunal imposed conditions prohibiting PIC-appointed directors from serving on boards of competing portfolio companies and...

Court Disposition

Merger conditionally approved subject to the conditions set out in Annexure A.

Orders

  • The merger between RTT Group (Pty) Ltd, Courierit SA (Pty) Ltd, and Warehouseit (Pty) Ltd is approved subject to the conditions in Annexure A.
  • No PIC-appointed board member of the target firms may serve on the boards of non-controlling portfolio companies for as long as PIC has an interest in the target firms.