Steinhoff Africa Holdings (Pty) Ltd and Unitrans Ltd (95/LM/Nov04) [2005] ZACT 9; [2005] 1 CPLR 250 (CT) (15 February 2005)

Steinhoff Africa Holdings (Pty) Ltd and Unitrans Ltd (95/LM/Nov04) [2005] ZACT 9; [2005] 1 CPLR 250 (CT) (15 February 2005)

The Tribunal found that the merger between Steinhoff Africa Holdings and Unitrans Ltd is a vertical merger affecting several supply-chain markets, including forestry transport, sawn timber, particleboard, furniture manufacturing, and logistics. The evidence demonstrated that Steinhoff Africa is a minor customer of Unitrans, and Unitrans's business is highly diversified with long-term contracts and specialized equipment for numerous clients. The presence of many competitors in each relevant market, including large transport contractors and alternative suppliers, means that neither input nor customer foreclosure is likely. The transaction does not alter the competitive dynamics or create...

Citation
[2005] ZACT 9
Parties
Applicant: Steinhoff Africa Holdings (Pty) Ltd; Respondent: Unitrans Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 February 2005
Case Number
95/LM/Nov04
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, D Lewis, M R Madlanga
Legal Topics
Vertical Merger, Market Definition, Input Foreclosure, Customer Foreclosure, Public Interest, Transport and Logistics
Competition Law Commercial and Corporate Vertical Merger Market Definition Input Foreclosure Customer Foreclosure Public Interest Transport and Logistics

Case Brief

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Parties

Steinhoff Africa Holdings (Pty) Ltd

Applicant

Unitrans Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that the merger between Steinhoff Africa Holdings and Unitrans Ltd is a vertical merger affecting several supply-chain markets, including forestry transport, sawn timber, particleboard, furniture manufacturing, and logistics. The evidence demonstrated that Steinhoff Africa is a minor customer of Unitrans, and Unitrans's business is highly diversified with long-term contracts and specialized equipment for numerous clients. The presence of many competitors in each relevant market, including large transport contractors and alternative suppliers, means that neither input nor customer foreclosure is likely. The transaction does not alter the competitive dynamics or create...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Steinhoff Africa Holdings (Pty) Ltd and Unitrans Ltd is approved without conditions.