Unitrans Supply Chain Solutions (Pty) Ltd v Xinergistix (Pty) Ltd (LM081Jun18) [2018] ZACT 60 (17 September 2018)

Unitrans Supply Chain Solutions (Pty) Ltd v Xinergistix (Pty) Ltd (LM081Jun18) [2018] ZACT 60 (17 September 2018)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the national markets for general cargo and refrigerated cargo transport services, as the combined post-merger market shares were low and competitive constraints remained. The restructuring and employment concerns raised by the trade union were found to be unrelated to the merger, having occurred prior to the transaction. The merging parties provided assurances that no jobs would be lost as a result of the merger. No other public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2018] ZACT 60
Parties
Applicant: Unitrans Supply Chain Solutions (Pty) Ltd; Respondent: Xinergistix (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 September 2018
Case Number
LM081Jun18
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Enver Daniels, Fiona Tregenna, Anton Roskam
Legal Topics
Merger Control, Public Interest, Market Share Analysis, Employment Effects
Competition Law Merger Control Public Interest Market Share Analysis Employment Effects

Case Brief

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Parties

Unitrans Supply Chain Solutions (Pty) Ltd

Applicant

Xinergistix (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the merger raises any public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the national markets for general cargo and refrigerated cargo transport services, as the combined post-merger market shares were low and competitive constraints remained. The restructuring and employment concerns raised by the trade union were found to be unrelated to the merger, having occurred prior to the transaction. The merging parties provided assurances that no jobs would be lost as a result of the merger. No other public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.