Super Group Trading (Proprietary) Limited and Businesses of DNA Supply Chain Investments Limited (38/LM/Jul03) [2003] ZACT 52 (8 October 2003)

Super Group Trading (Proprietary) Limited and Businesses of DNA Supply Chain Investments Limited (38/LM/Jul03) [2003] ZACT 52 (8 October 2003)

The Tribunal found that the relevant markets affected by the merger were logistics services, airfreight clearing, forwarding and consolidation, and information technology consultancy relevant to supply chain services. There was no overlap between the parties in the logistics and airfreight markets. The only overlap occurred in the market for information technology consultancy and systems relevant to supply chain services, but the combined market share of the parties was less than one percent, with large international competitors holding significantly higher shares. The Tribunal concluded that the merger would not result in a substantial lessening or prevention of competition. Regarding...

Citation
[2003] ZACT 52
Parties
Applicant: Super Group Trading (Proprietary) Limited; Respondent: Micor, Sherwood, DNA Automotive, Streamworks and Jumpoint Businesses of DNA Supply Chain Investments Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 October 2003
Case Number
38/LM/Jul03
Procedural Posture
Merger Approval / Merger Clearance Certificate Issued
Outcome
Merger approved unconditionally.
Judges
D. Lewis, N. Manoim, U. Bhoola
Legal Topics
Merger Control, Market Definition, Public Interest Considerations, Section 197 Lra
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Considerations Section 197 Lra

Case Brief

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Parties

Super Group Trading (Proprietary) Limited

Applicant

Micor, Sherwood, DNA Automotive, Streamworks and Jumpoint Businesses of DNA Supply Chain Investments Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Approval / Merger Clearance Certificate Issued

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial lessening or prevention of competition in any relevant market.
  2. 2 Whether there are any public interest considerations, including employment, that would justify prohibiting or conditioning the merger.

Ratio Decidendi

The Tribunal found that the relevant markets affected by the merger were logistics services, airfreight clearing, forwarding and consolidation, and information technology consultancy relevant to supply chain services. There was no overlap between the parties in the logistics and airfreight markets. The only overlap occurred in the market for information technology consultancy and systems relevant to supply chain services, but the combined market share of the parties was less than one percent, with large international competitors holding significantly higher shares. The Tribunal concluded that the merger would not result in a substantial lessening or prevention of competition. Regarding...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Super Group Trading (Proprietary) Limited and the Micor, Sherwood, DNA Automotive, Streamworks and Jumpoint Businesses of DNA Supply Chain Investments Limited is approved unconditionally.
  • Employees of the acquired businesses are to be transferred in accordance with section 197 of the Labour Relations Act.