Thebe Investment Corporation (Pty) Ltd v Pride Milling Company (Pty) Ltd (LM208Nov18) [2019] ZACT 13 (27 February 2019)

Thebe Investment Corporation (Pty) Ltd v Pride Milling Company (Pty) Ltd (LM208Nov18) [2019] ZACT 13 (27 February 2019)

The Tribunal found that the proposed transaction would not result in a horizontal overlap, as the parties operate in distinct segments of the agricultural sector. The vertical integration between Pride Milling and Compass Group, facilitated by Thebe's stake in Compass, would not substantially lessen or prevent competition in the relevant market. The Commission's investigation confirmed that neither Thebe Group nor Compass Group are significant customers for maize products, and competitors did not raise concerns. The transaction would improve Pride Milling's BEE status and have no adverse effect on employment. No other public interest concerns were identified. Accordingly, the Tribunal...

Citation
[2019] ZACT 13
Parties
Applicant: Thebe Investment Corporation (Pty) Ltd; Respondent: Pride Milling Company (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 February 2019
Case Number
LM208Nov18
Procedural Posture
Merger Control / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Mondo Mazwai, Fiona Tregenna
Legal Topics
Merger Control, Vertical Integration, Public Interest, Broad Based Black Economic Empowerment
Competition Law Merger Control Vertical Integration Public Interest Broad Based Black Economic Empowerment

Case Brief

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Parties

Thebe Investment Corporation (Pty) Ltd

Applicant

Pride Milling Company (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed transaction will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment and transformation.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a horizontal overlap, as the parties operate in distinct segments of the agricultural sector. The vertical integration between Pride Milling and Compass Group, facilitated by Thebe's stake in Compass, would not substantially lessen or prevent competition in the relevant market. The Commission's investigation confirmed that neither Thebe Group nor Compass Group are significant customers for maize products, and competitors did not raise concerns. The transaction would improve Pride Milling's BEE status and have no adverse effect on employment. No other public interest concerns were identified. Accordingly, the Tribunal...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Thebe Investment Corporation (Pty) Ltd and Pride Milling Company (Pty) Ltd is approved without conditions.