Unilever PLC v Alberto To—Culver Company (77/LM/Dec10) [2011] ZACT 21 (12 April 2011)

Unilever PLC v Alberto To—Culver Company (77/LM/Dec10) [2011] ZACT 21 (12 April 2011)

The Tribunal found that, although the post-merger market shares in the Caucasian hair shampoo and conditioner segments would be high, the market is characterized by ease of entry, low brand loyalty, and significant price sensitivity. The presence of countervailing power from large retailers further mitigates any potential anti-competitive effects. The Tribunal also considered public interest factors and found that the number of retrenchments would be limited and that most affected employees would be able to secure alternative employment. Accordingly, the Tribunal concluded that the merger would not substantially prevent or lessen competition in any relevant market and that there were no...

Citation
[2011] ZACT 21
Parties
Applicant: Unilever PLC; Respondent: Alberto-Culver Company
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 April 2011
Case Number
77/LM/Dec10
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Large Merger Review, Market Definition, Public Interest, Countervailing Power, Unilateral Effects
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Countervailing Power Unilateral Effects

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Parties

Unilever PLC

Applicant

Alberto-Culver Company

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger between Unilever PLC and Alberto-Culver Company would substantially prevent or lessen competition in the relevant hair care product markets.
  2. 2 Whether the transaction raises significant public interest concerns.

Ratio Decidendi

The Tribunal found that, although the post-merger market shares in the Caucasian hair shampoo and conditioner segments would be high, the market is characterized by ease of entry, low brand loyalty, and significant price sensitivity. The presence of countervailing power from large retailers further mitigates any potential anti-competitive effects. The Tribunal also considered public interest factors and found that the number of retrenchments would be limited and that most affected employees would be able to secure alternative employment. Accordingly, the Tribunal concluded that the merger would not substantially prevent or lessen competition in any relevant market and that there were no...

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Unilever PLC and Alberto-Culver Company is approved.
  • No significant public interest issues were identified.