Starfruit Finco B.V v Speciality Chemicals Business of Akzo Nobel N.V (LM049May18) [2018] ZACT 58 (7 August 2018)

Starfruit Finco B.V v Speciality Chemicals Business of Akzo Nobel N.V (LM049May18) [2018] ZACT 58 (7 August 2018)

The Tribunal found that there was no horizontal overlap between the acquiring group and the target firm in South Africa. The investigation into potential foreclosure of third party distributors revealed that distributors were not dependent on Akzo Nobel SC for supply, and the merged entity would not have the ability or incentive to foreclose supply. The merging parties confirmed that there would be no negative effects on employment and no other public interest concerns. Therefore, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and does not raise public interest issues. The merger was approved...

Citation
[2018] ZACT 58
Parties
Applicant: Starfruit Finco B.V.; Respondent: Speciality Chemicals Business of Akzo Nobel N.V.
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 August 2018
Case Number
LM049May18
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
AW Wessels, E Daniels, F Tregenna
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Foreclosure, Employment Effects
Competition Law Merger Control Horizontal Overlap Public Interest Foreclosure Employment Effects

Case Brief

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Parties

Starfruit Finco B.V.

Applicant

Speciality Chemicals Business of Akzo Nobel N.V.

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the merger raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that there was no horizontal overlap between the acquiring group and the target firm in South Africa. The investigation into potential foreclosure of third party distributors revealed that distributors were not dependent on Akzo Nobel SC for supply, and the merged entity would not have the ability or incentive to foreclose supply. The merging parties confirmed that there would be no negative effects on employment and no other public interest concerns. Therefore, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and does not raise public interest issues. The merger was approved...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.