Unilever South Africa (Pty) Ltd v Aconcagua 14 Investments (RF) (Pty) Ltd (LM051May17) [2017] ZACT 16 (27 June 2017)

Unilever South Africa (Pty) Ltd v Aconcagua 14 Investments (RF) (Pty) Ltd (LM051May17) [2017] ZACT 16 (27 June 2017)

The Tribunal found that there is no overlap between the activities of the merging parties, as Aconcagua is not involved in the manufacture, distribution, or marketing of consumer products, and Unilever South Africa does not own any Grade A commercial property in La Lucia or elsewhere in South Africa. The transaction will not affect third parties, as Unilever South Africa has been the sole tenant of the La Lucia Building and will continue to occupy it post-transaction. The merging parties confirmed that the transaction will not negatively affect employment, as the target firm has no employees. No other public interest concerns were identified. Accordingly, the Tribunal concluded that the...

Citation
[2017] ZACT 16
Parties
Applicant: Unilever South Africa (Pty) Ltd; Respondent: Aconcagua 14 Investments (RF) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 June 2017
Case Number
LM051May17
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
AW Wessels, Mondo Mazwai, lmraan Valodia
Legal Topics
Merger Control, Public Interest, Substantial Lessening of Competition
Competition Law Merger Control Public Interest Substantial Lessening of Competition

Case Brief

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Parties

Unilever South Africa (Pty) Ltd

Applicant

Aconcagua 14 Investments (RF) (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of Aconcagua 14 Investments (RF) (Pty) Ltd by Unilever South Africa (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any adverse public interest concerns.

Ratio Decidendi

The Tribunal found that there is no overlap between the activities of the merging parties, as Aconcagua is not involved in the manufacture, distribution, or marketing of consumer products, and Unilever South Africa does not own any Grade A commercial property in La Lucia or elsewhere in South Africa. The transaction will not affect third parties, as Unilever South Africa has been the sole tenant of the La Lucia Building and will continue to occupy it post-transaction. The merging parties confirmed that the transaction will not negatively affect employment, as the target firm has no employees. No other public interest concerns were identified. Accordingly, the Tribunal concluded that the...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The proposed merger between Unilever South Africa (Pty) Ltd and Aconcagua 14 Investments (RF) (Pty) Ltd is approved without conditions.