Ford Motor Company and Land Rover Group Ltd (82/LM/Jul00) [2000] ZACT 39 (7 September 2000)

Ford Motor Company and Land Rover Group Ltd (82/LM/Jul00) [2000] ZACT 39 (7 September 2000)

The Tribunal found that, regardless of how the relevant market was defined—whether as all passenger vehicles, light commercial vehicles, or utility four-wheel drive passenger vehicles—the post-merger market shares and concentration levels did not raise competition concerns. The increase in market share for Samcor, Ford's South African partner, was not significant enough to threaten competition. Furthermore, the merger did not raise any public interest concerns under section 16(3) of the Competition Act, as there would be no negative impact on employment, business operations, or distribution channels in South Africa. The transaction had already received clearance from competition...

Citation
[2000] ZACT 39
Parties
Applicant: Ford Motor Company; Respondent: Land Rover Group Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 September 2000
Case Number
82/LM/Jul00
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
N. M. Manoim, D.H. Lewis, P.E. Maponya
Legal Topics
Merger Control, Market Definition, Public Interest, Market Concentration
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Concentration

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Ford Motor Company

Applicant

Land Rover Group Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the merger between Ford Motor Company and Land Rover Group Ltd will substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the merger raises any public interest concerns under section 16(3) of the Competition Act.

Ratio Decidendi

The Tribunal found that, regardless of how the relevant market was defined—whether as all passenger vehicles, light commercial vehicles, or utility four-wheel drive passenger vehicles—the post-merger market shares and concentration levels did not raise competition concerns. The increase in market share for Samcor, Ford's South African partner, was not significant enough to threaten competition. Furthermore, the merger did not raise any public interest concerns under section 16(3) of the Competition Act, as there would be no negative impact on employment, business operations, or distribution channels in South Africa. The transaction had already received clearance from competition...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Ford Motor Company and Land Rover Group Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.