Shoprite Checkers Proprietary Limited v Gaterite Hypermarket, The Businesss of NAFAWA Trading CC (018226) [2014] ZACT 3; [2014] 1 CPLR 135 (CT) (8 April 2014)

Shoprite Checkers Proprietary Limited v Gaterite Hypermarket, The Businesss of NAFAWA Trading CC (018226) [2014] ZACT 3; [2014] 1 CPLR 135 (CT) (8 April 2014)

The Tribunal found that the relevant market is the retail of groceries and general merchandising within a 2km radius of the target firm, reflecting local consumer shopping patterns. Pre-merger, Shoprite held a market share of 5% to 15%, and Gaterite about 30%. Post-merger, Shoprite would hold between 35% and 45%. Despite this increase, the Tribunal accepted the Commission's view that Shoprite would remain constrained by other large competitors such as Pick ‘n Pay, Spar, and Checkout Supermarket, as well as numerous smaller competitors. No public interest concerns were identified. The Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition and...

Citation
[2014] ZACT 3
Parties
Applicant: Shoprite Checkers Proprietary Limited; Respondent: Gaterite Hypermarket, the business of Nafawa Trading CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 April 2014
Case Number
018226
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The merger is approved unconditionally.
Judges
Mondo Mazwai, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Market Definition, Public Interest, Retail Grocery Market
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Retail Grocery Market

Case Brief

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Parties

Shoprite Checkers Proprietary Limited

Applicant

Gaterite Hypermarket, the business of Nafawa Trading CC

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that the relevant market is the retail of groceries and general merchandising within a 2km radius of the target firm, reflecting local consumer shopping patterns. Pre-merger, Shoprite held a market share of 5% to 15%, and Gaterite about 30%. Post-merger, Shoprite would hold between 35% and 45%. Despite this increase, the Tribunal accepted the Commission's view that Shoprite would remain constrained by other large competitors such as Pick ‘n Pay, Spar, and Checkout Supermarket, as well as numerous smaller competitors. No public interest concerns were identified. The Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition and...

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed acquisition by Shoprite Checkers Proprietary Limited of Gaterite Hypermarket, the supermarket business of Nafawa Trading CC, is approved without conditions.