Super Group Trading (Pty) Ltd v Greystone Trading 6 CC (018333) [2014] ZACT 38; [2014] 1 CPLR 138 (CT) (26 March 2014)

Super Group Trading (Pty) Ltd v Greystone Trading 6 CC (018333) [2014] ZACT 38; [2014] 1 CPLR 138 (CT) (26 March 2014)

The Tribunal found that the relevant market is the redistribution/wholesaling of liquor to small independent or low-end retailers in the Western Cape. The combined market share of the merging parties post-merger would be approximately 4%, which is considered low. The presence of several other competitors in the market, such as Makro/Masscash, Ultra Liquor, Diamond Discount Liquor, and Liquor Runners, ensures that customers have alternative sources and that the merged entity will face sufficient competitive constraints. No public interest concerns were identified. Therefore, the transaction is unlikely to substantially prevent or lessen competition and was approved unconditionally.

Citation
[2014] ZACT 38
Parties
Applicant: Super Group Trading (Pty) Ltd; Respondent: Greystone Trading 6 CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 March 2014
Case Number
018333
Procedural Posture
Merger Review / Final Determination
Outcome
The merger was approved unconditionally.
Judges
T Madima, A Roskam, I Valodia
Legal Topics
Merger Control, Market Definition, Horizontal Overlap, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Horizontal Overlap Public Interest Market Share Analysis

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Super Group Trading (Pty) Ltd

Applicant

Greystone Trading 6 CC

Respondent

Procedural Posture

Merger Review / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the market for redistribution/wholesaling of liquor to low-end retailers in the Western Cape.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the relevant market is the redistribution/wholesaling of liquor to small independent or low-end retailers in the Western Cape. The combined market share of the merging parties post-merger would be approximately 4%, which is considered low. The presence of several other competitors in the market, such as Makro/Masscash, Ultra Liquor, Diamond Discount Liquor, and Liquor Runners, ensures that customers have alternative sources and that the merged entity will face sufficient competitive constraints. No public interest concerns were identified. Therefore, the transaction is unlikely to substantially prevent or lessen competition and was approved unconditionally.

Court Disposition

The merger was approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.