Tiso Blackstar Group SE v Robor (Pty) Ltd (LM111Aug15) [2015] ZACT 97 (18 November 2015)

Tiso Blackstar Group SE v Robor (Pty) Ltd (LM111Aug15) [2015] ZACT 97 (18 November 2015)

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in any relevant market. The merged entity would have less than 20% market share with an accretion of less than 5%, and would continue to face competition from other market participants. Vertical relationships between the parties did not present input or customer foreclosure risks, as Robor's market share was insufficient to exert market power. Concerns about information sharing were dismissed as not merger specific, given Tiso's lack of shareholding or board representation in other relevant companies. The Tribunal also found no adverse public interest effects, including on...

Citation
[2015] ZACT 97
Parties
Applicant: Tiso Blackstar Group SE; Respondent: Robor (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 November 2015
Case Number
LM111Aug15
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Medi Mokuena, Anton Roskam, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Overlap, Vertical Overlap, Input Foreclosure, Public Interest, Information Sharing
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Overlap Input Foreclosure Public Interest Information Sharing

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Parties

Tiso Blackstar Group SE

Applicant

Robor (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Tiso Blackstar Group SE and Robor (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market within South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.
  3. 3 Whether the transaction presents risks of information sharing due to Tiso's interests in other companies.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in any relevant market. The merged entity would have less than 20% market share with an accretion of less than 5%, and would continue to face competition from other market participants. Vertical relationships between the parties did not present input or customer foreclosure risks, as Robor's market share was insufficient to exert market power. Concerns about information sharing were dismissed as not merger specific, given Tiso's lack of shareholding or board representation in other relevant companies. The Tribunal also found no adverse public interest effects, including on...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Tiso Blackstar Group SE and Robor (Pty) Ltd is approved without conditions.