Unitrans Supply Chain Solutions (Pty) Ltd v Tanzer Transport (Pty) Ltd (17/LM/Feb12) [2012] ZACT 31 (3 May 2012)

Unitrans Supply Chain Solutions (Pty) Ltd v Tanzer Transport (Pty) Ltd (17/LM/Feb12) [2012] ZACT 31 (3 May 2012)

The Tribunal found that the merger resulted in both a horizontal overlap and a vertical integration in the market for the distribution of perishable food using temperature-controlled refrigerated vehicles. However, the merged entity's market share post-merger would be 9%, which is not significant enough to raise competition concerns. The service arrangement between Unitrans and Tanzer existed prior to the merger and would continue unchanged. The Commission's investigation revealed no substantial prevention or lessening of competition and no significant public interest issues. Accordingly, the Tribunal approved the merger without conditions.

Citation
[2012] ZACT 31
Parties
Applicant: Unitrans Supply Chain Solutions (Pty) Ltd; Respondent: Tanzer Transport (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 May 2012
Case Number
17/LM/Feb12
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
Y Carrim, Andiswa Ndoni, Taki Madima
Legal Topics
Horizontal Merger, Vertical Integration, Market Share Analysis, Public Interest, Merger Control
Competition Law Horizontal Merger Vertical Integration Market Share Analysis Public Interest Merger Control

Case Brief

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Parties

Unitrans Supply Chain Solutions (Pty) Ltd

Applicant

Tanzer Transport (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Unitrans and Tanzer will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the merger resulted in both a horizontal overlap and a vertical integration in the market for the distribution of perishable food using temperature-controlled refrigerated vehicles. However, the merged entity's market share post-merger would be 9%, which is not significant enough to raise competition concerns. The service arrangement between Unitrans and Tanzer existed prior to the merger and would continue unchanged. The Commission's investigation revealed no substantial prevention or lessening of competition and no significant public interest issues. Accordingly, the Tribunal approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Unitrans Supply Chain Solutions (Pty) Ltd and Tanzer Transport (Pty) Ltd is approved.
  • No conditions are attached to the approval.