Toyota Motor Corporation (Japan) and Toyota South Africa (Pty) Ltd (61/LM/Aug02) [2002] ZACT 56 (10 October 2002)

Toyota Motor Corporation (Japan) and Toyota South Africa (Pty) Ltd (61/LM/Aug02) [2002] ZACT 56 (10 October 2002)

The Tribunal found that the transaction merely increases Toyota Motor Corporation's shareholding in Toyota South Africa and does not alter the parties' participation in the relevant product markets. The merger does not affect competition, as Toyota Motor Corporation is not directly active in South Africa except through Toyota South Africa. Furthermore, the transaction does not present any public interest concerns and is likely to have a positive impact by increasing vehicle production and exports from South Africa. Accordingly, the merger was approved without conditions.

Citation
[2002] ZACT 56
Parties
Applicant: Toyota Motor Corporation (Japan); Respondent: Toyota South Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 October 2002
Case Number
61/LM/Aug02
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
N. Manoim, D. Lewis, P. Maponya
Legal Topics
Large Merger Review, Public Interest Assessment, Market Participation, Shareholding Increase
Competition Law Commercial and Corporate Large Merger Review Public Interest Assessment Market Participation Shareholding Increase

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Parties

Toyota Motor Corporation (Japan)

Applicant

Toyota South Africa (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the acquisition by Toyota Motor Corporation of a majority shareholding in Toyota South Africa raises competition concerns in the relevant product markets.
  2. 2 Whether the merger presents any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the transaction merely increases Toyota Motor Corporation's shareholding in Toyota South Africa and does not alter the parties' participation in the relevant product markets. The merger does not affect competition, as Toyota Motor Corporation is not directly active in South Africa except through Toyota South Africa. Furthermore, the transaction does not present any public interest concerns and is likely to have a positive impact by increasing vehicle production and exports from South Africa. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Toyota Motor Corporation (Japan) and Toyota South Africa (Pty) Ltd is approved without conditions.