Univeler PLC v Unilever N.V. (LM060Jul20) [2020] ZACT 26 (28 August 2020)

Univeler PLC v Unilever N.V. (LM060Jul20) [2020] ZACT 26 (28 August 2020)

The Tribunal found that the proposed transaction is an internal reorganisation of the Unilever Group, collapsing the dual-headed structure into a single parent company, Unilever PLC. The transaction does not alter the structure of any market in South Africa and is unlikely to substantially prevent or lessen competition. The Commission's investigation, including consultation with customers and competitors, revealed no concerns or objections. Furthermore, the merging parties provided an unequivocal statement that the transaction will not result in retrenchments or negatively affect employment. No other public interest concerns were identified. Accordingly, the Tribunal approved the...

Citation
[2020] ZACT 26
Parties
Applicant: Unilever PLC; Respondent: Unilever N.V.
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 August 2020
Case Number
LM060Jul20
Procedural Posture
Merger Control / Reasons for Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Andreas Wessels, Andiswa Ndoni
Legal Topics
Merger Control, Internal Reorganisation, Public Interest, Market Structure, Employment Effects
Competition Law Merger Control Internal Reorganisation Public Interest Market Structure Employment Effects

Case Brief

Summary, issues, holding and outcome

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Parties

Unilever PLC

Applicant

Unilever N.V.

Respondent

Procedural Posture

Merger Control / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Unilever PLC and Unilever N.V. will substantially prevent or lessen competition in any market in South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction is an internal reorganisation of the Unilever Group, collapsing the dual-headed structure into a single parent company, Unilever PLC. The transaction does not alter the structure of any market in South Africa and is unlikely to substantially prevent or lessen competition. The Commission's investigation, including consultation with customers and competitors, revealed no concerns or objections. Furthermore, the merging parties provided an unequivocal statement that the transaction will not result in retrenchments or negatively affect employment. No other public interest concerns were identified. Accordingly, the Tribunal approved the...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Unilever PLC and Unilever N.V. is approved without conditions.