Volkswagen AG v Man SE (59/LM/Jul11) [2011] ZACT 99; [2012] 1 CPLR 178 (CT) (21 November 2011)

Volkswagen AG v Man SE (59/LM/Jul11) [2011] ZACT 99; [2012] 1 CPLR 178 (CT) (21 November 2011)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any of the relevant markets. In the intercity bus and extra heavy duty truck markets, the merged entity would continue to face strong competition from established players such as Mercedes Benz, Volvo, Iveco, and UD Trucks. In the city/commuter bus market, although the merged entity would be dominant, market shares are highly volatile and subject to fluctuation due to tender-driven demand. The Tribunal accepted evidence that customers possess significant countervailing power and can easily switch suppliers. No effective competitor would be removed by the merger, given the parties'...

Citation
[2011] ZACT 99
Parties
Applicant: Volkswagen AG; Respondent: Man SE
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 November 2011
Case Number
59/LM/Jul11
Procedural Posture
Merger Control / Approval
Outcome
Merger unconditionally approved.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Horizontal Effects, Vertical Effects, Market Share Analysis, Public Interest, Foreclosure
Competition Law Commercial and Corporate Merger Control Horizontal Effects Vertical Effects Market Share Analysis Public Interest Foreclosure

Case Brief

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Parties

Volkswagen AG

Applicant

Man SE

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger between Volkswagen AG and MAN SE will substantially prevent or lessen competition in the relevant South African markets.
  2. 2 Whether the merger raises any horizontal or vertical competition concerns.
  3. 3 Whether there are any public interest issues arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any of the relevant markets. In the intercity bus and extra heavy duty truck markets, the merged entity would continue to face strong competition from established players such as Mercedes Benz, Volvo, Iveco, and UD Trucks. In the city/commuter bus market, although the merged entity would be dominant, market shares are highly volatile and subject to fluctuation due to tender-driven demand. The Tribunal accepted evidence that customers possess significant countervailing power and can easily switch suppliers. No effective competitor would be removed by the merger, given the parties'...

Court Disposition

Merger unconditionally approved.

Orders

  • The proposed transaction between Volkswagen AG and MAN SE is approved without conditions.