Newshelf 809 (Pty) Ltd and Consol Limited (07/LM/JAN07) [2007] ZACT 24; [2007] 1 CPLR 213 (CT) (13 April 2007)

Newshelf 809 (Pty) Ltd and Consol Limited (07/LM/JAN07) [2007] ZACT 24; [2007] 1 CPLR 213 (CT) (13 April 2007)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the relevant markets. The vertical relationship between Consol and DGB was immaterial, as DGB represents a small portion of Consol's sales and the wine bottle market. The horizontal overlap was eliminated by Brait's divestiture of its interest in Bevpack, which was confirmed on the day of the hearing. The Tribunal was satisfied that there were no significant public interest concerns and that the merger could be approved unconditionally.

Citation
[2007] ZACT 24
Parties
Applicant: Newshelf 809 (Pty) Ltd; Respondent: Consol Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 April 2007
Case Number
07/LM/JAN07
Procedural Posture
Merger Control / Merger Approval
Outcome
The proposed merger between Newshelf 809 (Pty) Ltd and Consol Limited is approved unconditionally.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Horizontal Overlap, Vertical Foreclosure, Private Equity Transaction
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Foreclosure Private Equity Transaction

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Parties

Newshelf 809 (Pty) Ltd

Applicant

Consol Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Newshelf 809 (Pty) Ltd and Consol Limited is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether Brait's interests in related entities raise horizontal or vertical competition concerns.
  3. 3 Whether the divestiture of Brait's interest in Bevpack eliminates potential competition overlap.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the relevant markets. The vertical relationship between Consol and DGB was immaterial, as DGB represents a small portion of Consol's sales and the wine bottle market. The horizontal overlap was eliminated by Brait's divestiture of its interest in Bevpack, which was confirmed on the day of the hearing. The Tribunal was satisfied that there were no significant public interest concerns and that the merger could be approved unconditionally.

Court Disposition

The proposed merger between Newshelf 809 (Pty) Ltd and Consol Limited is approved unconditionally.

Orders

  • The merger between Newshelf 809 (Pty) Ltd and Consol Limited is approved without conditions.