Clidet No. 366 (Pty) Ltd and Dorbyl Metals Trading (a division of Dorbyl Limited) (19/LM/Mar02) [2002] ZACT 24 (15 April 2002)

Clidet No. 366 (Pty) Ltd and Dorbyl Metals Trading (a division of Dorbyl Limited) (19/LM/Mar02) [2002] ZACT 24 (15 April 2002)

The Tribunal found that the merger between Clidet No. 366 (Pty) Ltd and Dorbyl Metals Trading is unlikely to result in a substantial lessening of competition. There is no significant overlap in the goods and services supplied by the parties, and the only indirect interest ABSA holds in the steel industry is negligible. The transaction is a management buy-out, and the business will continue as a going concern, with minimal job losses. No substantial public interest issues arise, and the registered trade union made no representations. The merger is therefore approved without conditions.

Citation
[2002] ZACT 24
Parties
Applicant: Clidet No. 366 (Pty) Ltd; Respondent: Dorbyl Metals Trading, a division of Dorbyl Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 April 2002
Case Number
19/LM/Mar02
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, S. Zilwa, D.H. Lewis
Legal Topics
Large Merger, Substantial Lessening of Competition, Public Interest, Management Buy Out
Competition Law Large Merger Substantial Lessening of Competition Public Interest Management Buy Out

Case Brief

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Parties

Clidet No. 366 (Pty) Ltd

Applicant

Dorbyl Metals Trading, a division of Dorbyl Limited

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether there are any substantial public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the merger between Clidet No. 366 (Pty) Ltd and Dorbyl Metals Trading is unlikely to result in a substantial lessening of competition. There is no significant overlap in the goods and services supplied by the parties, and the only indirect interest ABSA holds in the steel industry is negligible. The transaction is a management buy-out, and the business will continue as a going concern, with minimal job losses. No substantial public interest issues arise, and the registered trade union made no representations. The merger is therefore approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Clidet No. 366 (Pty) Ltd and Dorbyl Metals Trading, a division of Dorbyl Limited, is approved unconditionally.