SAAB AB v Aerostructures Business of Denel (Pty) Ltd (61/LM/Jul06) [2006] ZACT 99 (19 October 2006)

SAAB AB v Aerostructures Business of Denel (Pty) Ltd (61/LM/Jul06) [2006] ZACT 99 (19 October 2006)

The Tribunal found that the proposed merger between SAAB AB and the Aerostructures Business of Denel (Pty) Ltd would not result in a substantial prevention or lessening of competition in the relevant market. Both parties have a minimal combined global market share of less than 2% in the aerostructures market, and there are numerous competitors active internationally. The horizontal overlap is insignificant, and the vertical relationships, primarily arising from Defence Industrial Participation obligations, are limited in scope and duration. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2006] ZACT 99
Parties
Applicant: SAAB AB; Respondent: Aerostructures Business of Denel (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 October 2006
Case Number
61/LM/Jul06
Procedural Posture
Merger Control / Merger Clearance Decision
Outcome
Merger approved unconditionally; no substantial prevention or lessening of competition found.
Judges
N Manoim, Y Carrim, U Bhoola
Legal Topics
Merger Control, Horizontal Relationship, Vertical Relationship, Market Definition, Public Interest
Competition Law Commercial and Corporate Merger Control Horizontal Relationship Vertical Relationship Market Definition Public Interest

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Parties

SAAB AB

Applicant

Aerostructures Business of Denel (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Clearance Decision

Legal Issues

  1. 1 Whether the proposed merger between SAAB AB and Aerostructures Business of Denel (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether there are any significant horizontal or vertical competition concerns arising from the transaction.
  3. 3 Whether any public interest issues are implicated by the merger.

Ratio Decidendi

The Tribunal found that the proposed merger between SAAB AB and the Aerostructures Business of Denel (Pty) Ltd would not result in a substantial prevention or lessening of competition in the relevant market. Both parties have a minimal combined global market share of less than 2% in the aerostructures market, and there are numerous competitors active internationally. The horizontal overlap is insignificant, and the vertical relationships, primarily arising from Defence Industrial Participation obligations, are limited in scope and duration. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally; no substantial prevention or lessening of competition found.

Orders

  • The merger between SAAB AB and Aerostructures Business of Denel (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the transaction.