Super Group Dealerships (division of Super Group Trading (Pty) Ltd) and LM Wolfsohn Motors (Pty) Ltd (85/LM/Sep05) [2005] ZACT 78 (3 November 2005)

Super Group Dealerships (division of Super Group Trading (Pty) Ltd) and LM Wolfsohn Motors (Pty) Ltd (85/LM/Sep05) [2005] ZACT 78 (3 November 2005)

The Tribunal found that the merger between Super Group Dealerships and LM Wolfsohn Motors does not raise any competition concerns. There is no geographic overlap between the parties if the market is defined locally, and even if defined regionally, the high market shares existed prior to the merger. The distribution of medium and heavy commercial vehicles is national, further reducing any potential anti-competitive effects. No jobs will be lost, and no significant public interest issues arise. The Tribunal therefore approved the merger.

Citation
[2005] ZACT 78
Parties
Applicant: Super Group Dealerships (division of Super Group Trading (Pty) Ltd); Respondent: LM Wolfsohn Motors (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 November 2005
Case Number
85/LM/Sep05
Procedural Posture
Large Merger / Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Share Analysis

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Parties

Super Group Dealerships (division of Super Group Trading (Pty) Ltd)

Applicant

LM Wolfsohn Motors (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Does the proposed merger substantially prevent or lessen competition in any relevant market?
  2. 2 Is there any significant public interest concern arising from the transaction?
  3. 3 Will the merger result in any job losses or adverse employment effects?

Ratio Decidendi

The Tribunal found that the merger between Super Group Dealerships and LM Wolfsohn Motors does not raise any competition concerns. There is no geographic overlap between the parties if the market is defined locally, and even if defined regionally, the high market shares existed prior to the merger. The distribution of medium and heavy commercial vehicles is national, further reducing any potential anti-competitive effects. No jobs will be lost, and no significant public interest issues arise. The Tribunal therefore approved the merger.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Super Group Dealerships (division of Super Group Trading (Pty) Ltd) and LM Wolfsohn Motors (Pty) Ltd is approved.
  • No conditions are imposed.