Texmex 57 (Pty) Ltd v Bidvest Car Rental (Pty) Ltd (LM011Apr21) [2021] ZACT 26 (13 August 2021)

Texmex 57 (Pty) Ltd v Bidvest Car Rental (Pty) Ltd (LM011Apr21) [2021] ZACT 26 (13 August 2021)

The Tribunal found that the proposed merger between Texmex 57 (Pty) Ltd and Bidvest Car Rental (Pty) Ltd would not substantially prevent or lessen competition in any relevant market, as the merging parties' market shares were below the threshold of concern and there was sufficient competition from other market participants. The Tribunal also considered the significant retrenchments at BCR prior to the merger, but accepted the Commission's finding that these were attributable to the Covid-19 pandemic and not merger-specific. In light of public interest concerns, particularly regarding employment, the Tribunal imposed a condition requiring the acquiring firm to offer employment...

Citation
[2021] ZACT 26
Parties
Applicant: Texmex 57 (Pty) Ltd; Respondent: Bidvest Car Rental (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 August 2021
Case Number
LM011Apr21
Procedural Posture
Merger Application / Conditional Approval
Outcome
Merger conditionally approved subject to employment-related conditions.
Judges
Andreas Wessels, Yasmin Carrim, Halton Cheadle
Legal Topics
Merger Control, Public Interest Conditions, Employment Effects, Vertical Overlap
Competition Law Commercial and Corporate Merger Control Public Interest Conditions Employment Effects Vertical Overlap

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 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Texmex 57 (Pty) Ltd

Applicant

Bidvest Car Rental (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Conditional Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises public interest concerns, particularly regarding employment.
  3. 3 Whether the employment-related conditions attached to the approval are appropriate and sufficient.

Ratio Decidendi

The Tribunal found that the proposed merger between Texmex 57 (Pty) Ltd and Bidvest Car Rental (Pty) Ltd would not substantially prevent or lessen competition in any relevant market, as the merging parties' market shares were below the threshold of concern and there was sufficient competition from other market participants. The Tribunal also considered the significant retrenchments at BCR prior to the merger, but accepted the Commission's finding that these were attributable to the Covid-19 pandemic and not merger-specific. In light of public interest concerns, particularly regarding employment, the Tribunal imposed a condition requiring the acquiring firm to offer employment...

Court Disposition

Merger conditionally approved subject to employment-related conditions.

Orders

  • The proposed transaction is approved subject to the employment-related conditions set out in Annexure A.
  • The acquiring firm must offer employment opportunities, under specified conditions, to suitably qualified retrenched BCR employees for a period of 24 months following implementation of the merger.