Unilever Plc Unifoods (a division of Unilever South Africa (Pty) Ltd) / Hudson & Knight (a division of Unilever South Africa (Pty) Ltd) / Robertsons Foods (Pty) Ltd / Robertsons Food Service (Pty) Ltd and Competition Commission of South Africa / CEPPWAWU / FAWU / NUFBWSAW (55/LM/Sep01) [2002] ZACT 15 (6 March 2002)
The Tribunal found that, subject to the imposed divestiture conditions, the merger was not likely to result in a substantial lessening or prevention of competition. The conditions required the merging parties to divest the Royco and Oxo brands, including associated intellectual property, to an independent third party approved by the Commission. The Tribunal determined that these remedies were sufficient to address competition concerns, regardless of whether the Commission's narrow market definition was correct. On public interest, the Tribunal acknowledged potential job losses but held that the merging parties were obliged to consult with unions once the sale of divested assets was...
- Citation
- [2002] ZACT 15
- Parties
- Applicant: Unilever Plc; Applicant: Unifoods, a division of Unilever South Africa (Pty) Ltd; Applicant: Hudson & Knight, a division of Unilever South Africa (Pty) Ltd; Applicant: Robertsons Foods (Pty) Ltd; Applicant: Robertsons Food Service (Pty) Ltd; Respondent: Competition Commission of South Africa; Respondent: CEPPWAWU; Respondent: FAWU; Respondent: NUFBWSAW
- Court
- Competition Tribunal
- Jurisdiction
- South Africa
- Judgment Date
- 6 March 2002
- Case Number
- 55/LM/Sep01
- Procedural Posture
- Merger Control / Final Determination
- Outcome
- Merger approved subject to conditions.
- Judges
- D.H. Lewis, M. Holden, N.M. Manoim
- Legal Topics
- Merger Control, Market Definition, Divestiture Remedies, Public Interest, Employment Impact
Case Brief
Summary, issues, holding and outcome
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Parties
Unilever Plc
Applicant
Unifoods, a division of Unilever South Africa (Pty) Ltd
Applicant
Hudson & Knight, a division of Unilever South Africa (Pty) Ltd
Applicant
Robertsons Foods (Pty) Ltd
Applicant
Robertsons Food Service (Pty) Ltd
Applicant
Competition Commission of South Africa
Respondent
CEPPWAWU
Respondent
FAWU
Respondent
NUFBWSAW
Respondent
Procedural Posture
Merger Control / Final Determination
Legal Issues
- 1 Whether the proposed merger would result in a substantial lessening or prevention of competition in the relevant markets.
- 2 Whether the divestiture conditions adequately address competition concerns.
- 3 Whether the merger raises significant public interest concerns, particularly regarding employment.
Ratio Decidendi
The Tribunal found that, subject to the imposed divestiture conditions, the merger was not likely to result in a substantial lessening or prevention of competition. The conditions required the merging parties to divest the Royco and Oxo brands, including associated intellectual property, to an independent third party approved by the Commission. The Tribunal determined that these remedies were sufficient to address competition concerns, regardless of whether the Commission's narrow market definition was correct. On public interest, the Tribunal acknowledged potential job losses but held that the merging parties were obliged to consult with unions once the sale of divested assets was...
Court Disposition
Merger approved subject to conditions.
Orders
- The merging parties shall dispose of the Royco and Oxo brands, including all associated intellectual property, to an independent third party approved by the Commission.
- Certain sub-brands (Cup-a-Soup, Cup-a-Snack, Mates, Pasta and Sauce) are excluded from divestiture and remain with the merging parties.
Full Case Text
Judgment text and source record
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