RTZ Zelpy 5113 (Pty) Ltd and Diamond's Discount Liquor (Pty) Ltd (94/LM/Sep07) [2007] ZACT 84 (7 November 2007)

RTZ Zelpy 5113 (Pty) Ltd and Diamond's Discount Liquor (Pty) Ltd (94/LM/Sep07) [2007] ZACT 84 (7 November 2007)

The Tribunal found that there is no overlap in the activities of the merging parties, as the acquiring firm does not have interests in the retail and wholesale liquor industry where the target firm operates. Consequently, the proposed transaction is unlikely to substantially prevent or lessen competition in any market. Furthermore, there are no public interest issues arising from the merger. The Tribunal therefore approved the merger unconditionally.

Citation
[2007] ZACT 84
Parties
Applicant: RTZ Zelpy 5113 (Pty) Ltd; Respondent: Diamond's Discount Liquor (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 November 2007
Case Number
94/LM/Sep07
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Retail Liquor Market, Joint Control, Investment Opportunity
Competition Law Commercial and Corporate Merger Control Retail Liquor Market Joint Control Investment Opportunity

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Parties

RTZ Zelpy 5113 (Pty) Ltd

Applicant

Diamond's Discount Liquor (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that there is no overlap in the activities of the merging parties, as the acquiring firm does not have interests in the retail and wholesale liquor industry where the target firm operates. Consequently, the proposed transaction is unlikely to substantially prevent or lessen competition in any market. Furthermore, there are no public interest issues arising from the merger. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between RTZ Zelpy 5113 (Pty) Ltd and Diamond's Discount Liquor (Pty) Ltd is approved without conditions.