Tiger Brands Ltd v Davita Trading (Pty) Ltd (18/LM/Mar11) [2011] ZACT 47 (8 July 2011)

Tiger Brands Ltd v Davita Trading (Pty) Ltd (18/LM/Mar11) [2011] ZACT 47 (8 July 2011)

The Tribunal found that the activities of Tiger Brands and Davita Trading overlapped horizontally in the manufacture and distribution of powdered soft drinks. However, the merged entity's post-merger market share would be less than 10% in the national market for powdered soft drinks, with larger competitors present. The Commission's investigation revealed no competition concerns from customers and confirmed Davita's insignificant presence in South Africa. The Tribunal concurred with the Commission that precise market definition was unnecessary, as the merger would not substantially prevent or lessen competition under any plausible delineation. No job losses or other public interest issues...

Citation
[2011] ZACT 47
Parties
Applicant: Tiger Brands Limited; Respondent: Davita Trading (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 July 2011
Case Number
18/LM/Mar11
Procedural Posture
Merger Application / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Andreas Wessels, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Horizontal Overlap
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Horizontal Overlap

Case Brief

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Parties

Tiger Brands Limited

Applicant

Davita Trading (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Tiger Brands Limited and Davita Trading (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the activities of Tiger Brands and Davita Trading overlapped horizontally in the manufacture and distribution of powdered soft drinks. However, the merged entity's post-merger market share would be less than 10% in the national market for powdered soft drinks, with larger competitors present. The Commission's investigation revealed no competition concerns from customers and confirmed Davita's insignificant presence in South Africa. The Tribunal concurred with the Commission that precise market definition was unnecessary, as the merger would not substantially prevent or lessen competition under any plausible delineation. No job losses or other public interest issues...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Tiger Brands Limited and Davita Trading (Pty) Ltd is approved without conditions.