Southern Sun Hotels Proprietary Limited and Another v Majormatic 194 Proprietary Limited (LM183Nov15) [2016] ZACT 5 (25 January 2016)

Southern Sun Hotels Proprietary Limited and Another v Majormatic 194 Proprietary Limited (LM183Nov15) [2016] ZACT 5 (25 January 2016)

The Tribunal found that in all relevant markets—Hazyview, Rosebank, and Sandton—the merged entity's market share would remain below thresholds that typically raise competition concerns, with sufficient alternative competitors present. The Commission's investigation revealed no evidence of substantial lessening or prevention of competition, and no objections were raised by customers, travel agencies, or competitors. The merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. Accordingly, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition or negatively affect public interest, and...

Citation
[2016] ZACT 5
Parties
Applicant: Southern Sun Hotels Proprietary Limited; Applicant: Southern Sun Hotel Interests Proprietary Limited; Respondent: Majormatic 194 Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 January 2016
Case Number
LM183Nov15
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Anton Roskam
Legal Topics
Horizontal Merger, Market Share Analysis, Public Interest, Hotel Management, Unconditional Approval
Competition Law Horizontal Merger Market Share Analysis Public Interest Hotel Management Unconditional Approval

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Parties

Southern Sun Hotels Proprietary Limited

Applicant

Southern Sun Hotel Interests Proprietary Limited

Applicant

Majormatic 194 Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant hotel accommodation markets.
  2. 2 Whether the merger raises any public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that in all relevant markets—Hazyview, Rosebank, and Sandton—the merged entity's market share would remain below thresholds that typically raise competition concerns, with sufficient alternative competitors present. The Commission's investigation revealed no evidence of substantial lessening or prevention of competition, and no objections were raised by customers, travel agencies, or competitors. The merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. Accordingly, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition or negatively affect public interest, and...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.