Sunset Bay Trading 368 (Pty) Ltd v Jobling Investments (Pty) Ltd (19/AM/Feb12) [2012] ZACT 42; [2012] 2 CPLR 543 (CT) (27 June 2012)

Sunset Bay Trading 368 (Pty) Ltd v Jobling Investments (Pty) Ltd (19/AM/Feb12) [2012] ZACT 42; [2012] 2 CPLR 543 (CT) (27 June 2012)

The Tribunal found that the proposed merger would result in increased market concentration and raised foreclosure concerns in the market for extruded copper busbar and solid copper extrusions. However, the supply conditions agreed upon by the merging parties and the Commission, including continued supply to independent stockists, transparency, equal treatment, and monitoring for three years, were deemed sufficient to address these concerns. The Tribunal also considered public interest factors, noting minimal job loss and the creation of new jobs for the lower income group. On balance, the Tribunal concluded that the merger, subject to the imposed conditions, would not substantially...

Citation
[2012] ZACT 42
Parties
Applicant: Sunset Bay Trading 368 (Pty) Ltd; Respondent: Jobling Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 June 2012
Case Number
19/AM/Feb12
Procedural Posture
Merger Application / Tribunal Approval With Conditions
Outcome
Merger approved subject to conditions.
Judges
Yasmin Carrim, Medi Mokuena, Takalani Madima
Legal Topics
Merger Control, Vertical Integration, Market Concentration, Foreclosure, Public Interest, Supply Conditions
Competition Law Commercial and Corporate Merger Control Vertical Integration Market Concentration Foreclosure Public Interest Supply Conditions

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Parties

Sunset Bay Trading 368 (Pty) Ltd

Applicant

Jobling Investments (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Tribunal Approval With Conditions

Legal Issues

  1. 1 Does the proposed merger between Sunset Bay Trading 368 (Pty) Ltd and Jobling Investments (Pty) Ltd substantially prevent or lessen competition in the relevant markets?
  2. 2 Are the foreclosure concerns raised by the Competition Commission adequately addressed by the proposed supply conditions?
  3. 3 Does the transaction raise any significant public interest concerns?

Ratio Decidendi

The Tribunal found that the proposed merger would result in increased market concentration and raised foreclosure concerns in the market for extruded copper busbar and solid copper extrusions. However, the supply conditions agreed upon by the merging parties and the Commission, including continued supply to independent stockists, transparency, equal treatment, and monitoring for three years, were deemed sufficient to address these concerns. The Tribunal also considered public interest factors, noting minimal job loss and the creation of new jobs for the lower income group. On balance, the Tribunal concluded that the merger, subject to the imposed conditions, would not substantially...

Court Disposition

Merger approved subject to conditions.

Orders

  • The merger between Sunset Bay Trading 368 (Pty) Ltd and Jobling Investments (Pty) Ltd is approved subject to the supply conditions set out in annexure A and the order issued on 8 May 2012.
  • The merged entity must continue to make products available for sale to existing and new independent stockists for a period of three years.