Steinhoff International Holdings N.V v Tekkie Town (Pty) Ltd (LM113Sep16) [2016] ZACT 103; [2017] 1 CPLR 389 (CT) (14 December 2016)

Steinhoff International Holdings N.V v Tekkie Town (Pty) Ltd (LM113Sep16) [2016] ZACT 103; [2017] 1 CPLR 389 (CT) (14 December 2016)

The Tribunal found that the proposed merger between Steinhoff and Tekkie Town does not result in a substantial lessening of competition in any relevant market. The market share accretion in branded footwear is minimal, and competition remains robust due to the presence of other competitors. Foreclosure concerns in distribution services are unfounded, as Tekkie Town's business model and contracts will not change post-merger. No adverse public interest effects, including employment, arise from the transaction. Accordingly, the merger is approved unconditionally.

Citation
[2016] ZACT 103
Parties
Applicant: Steinhoff International Holdings N.V; Respondent: Tekkie Town (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 December 2016
Case Number
LM113Sep16
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Mondo Mazwai, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Public Interest, Foreclosure Concerns
Competition Law Merger Control Horizontal Overlap Market Definition Public Interest Foreclosure Concerns

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Parties

Steinhoff International Holdings N.V

Applicant

Tekkie Town (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Does the proposed merger between Steinhoff and Tekkie Town substantially prevent or lessen competition in any relevant market?
  2. 2 Does the transaction raise any public interest concerns, including adverse impact on employment?
  3. 3 Is there a risk of foreclosure in distribution services post-merger?

Ratio Decidendi

The Tribunal found that the proposed merger between Steinhoff and Tekkie Town does not result in a substantial lessening of competition in any relevant market. The market share accretion in branded footwear is minimal, and competition remains robust due to the presence of other competitors. Foreclosure concerns in distribution services are unfounded, as Tekkie Town's business model and contracts will not change post-merger. No adverse public interest effects, including employment, arise from the transaction. Accordingly, the merger is approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Steinhoff International Holdings N.V and Tekkie Town (Pty) Ltd is approved without conditions.