Secotrade 72 (Pty) Ltd and Another and Hyundai Motor Distributors (Pty) Ltd (46/LM/Apr00) [2000] ZACT 27 (27 June 2000)

Secotrade 72 (Pty) Ltd and Another and Hyundai Motor Distributors (Pty) Ltd (46/LM/Apr00) [2000] ZACT 27 (27 June 2000)

The Tribunal found that the merger would not substantially prevent or lessen competition in any of the relevant markets. Imperial's post-merger market share in passenger vehicles would increase only marginally from 6% to 7%, remaining significantly lower than its main competitors. The retail and after-sales markets are fragmented, and the estimated market shares do not indicate any competition concerns. The Tribunal also noted that the exclusive distribution agreement for three years had not been provided, and its approval of the merger does not extend to approval of that agreement. The transaction was approved without conditions.

Citation
[2000] ZACT 27
Parties
Applicant: Secotrade 72 (Pty) Ltd; Applicant: Imperial Holdings Ltd; Respondent: Hyundai Motor Distributors (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 June 2000
Case Number
46/LM/Apr00
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
D.H Lewis, N.M. Manoim, P.E. Maponya
Legal Topics
Large Merger Review, Market Share Analysis, Exclusive Distribution Agreement
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Exclusive Distribution Agreement

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 2 Authorities cited 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Secotrade 72 (Pty) Ltd

Applicant

Imperial Holdings Ltd

Applicant

Hyundai Motor Distributors (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the exclusive distribution agreement raises competition concerns.
  3. 3 Whether the change in market share post-merger is significant enough to affect competition.

Ratio Decidendi

The Tribunal found that the merger would not substantially prevent or lessen competition in any of the relevant markets. Imperial's post-merger market share in passenger vehicles would increase only marginally from 6% to 7%, remaining significantly lower than its main competitors. The retail and after-sales markets are fragmented, and the estimated market shares do not indicate any competition concerns. The Tribunal also noted that the exclusive distribution agreement for three years had not been provided, and its approval of the merger does not extend to approval of that agreement. The transaction was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Secotrade 72 (Pty) Ltd and Hyundai Motor Distributors (Pty) Ltd is approved without conditions.
  • This approval does not extend to the exclusive distribution agreement, which was not submitted to the Tribunal.