Shoprite Checkers (Pty) Ltd v Main Street 1883 (Pty) (LM151Dec21) [2022] ZACT 13 (15 March 2022)

Shoprite Checkers (Pty) Ltd v Main Street 1883 (Pty) (LM151Dec21) [2022] ZACT 13 (15 March 2022)

The Tribunal found that the proposed merger between Shoprite Checkers and Main Street 1883 would not substantially prevent or lessen competition in any relevant market. The vertical overlap between Shoprite's online shopping platform and Main Street's on-demand delivery services is pre-existing, and alternative suppliers are available to competitors. The merger will not result in input or customer foreclosure, as competitors can procure on-demand delivery services from other providers. No third parties raised concerns. The merging parties provided an unequivocal undertaking that no employees would be retrenched, and the historically disadvantaged person shareholding in Main Street would...

Citation
[2022] ZACT 13
Parties
Applicant: Shoprite Checkers (Pty) Ltd; Respondent: Main Street 1883 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 March 2022
Case Number
LM151Dec21
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger unconditionally approved.
Judges
Enver Daniels, lmraan Valodia, Liberty Mncube
Legal Topics
Vertical Merger, Input Foreclosure, Customer Foreclosure, Public Interest, Spread of Ownership, Employment Effects
Competition Law Vertical Merger Input Foreclosure Customer Foreclosure Public Interest Spread of Ownership Employment Effects

Case Brief

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Parties

Shoprite Checkers (Pty) Ltd

Applicant

Main Street 1883 (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises public interest concerns, including employment and spread of ownership.
  3. 3 Whether the merger will result in input or customer foreclosure in the market for on-demand delivery services.

Ratio Decidendi

The Tribunal found that the proposed merger between Shoprite Checkers and Main Street 1883 would not substantially prevent or lessen competition in any relevant market. The vertical overlap between Shoprite's online shopping platform and Main Street's on-demand delivery services is pre-existing, and alternative suppliers are available to competitors. The merger will not result in input or customer foreclosure, as competitors can procure on-demand delivery services from other providers. No third parties raised concerns. The merging parties provided an unequivocal undertaking that no employees would be retrenched, and the historically disadvantaged person shareholding in Main Street would...

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Shoprite Checkers (Pty) Ltd and Main Street 1883 (Pty) Ltd is unconditionally approved.
  • No conditions are imposed on the approval of the merger.