Volkswagen Aktiengesellschaft v Scania Aktiebolag (47/LM/Apr08) [2008] ZACT 58; [2008] 2 CPLR 303 (CT) (22 July 2008)

Volkswagen Aktiengesellschaft v Scania Aktiebolag (47/LM/Apr08) [2008] ZACT 58; [2008] 2 CPLR 303 (CT) (22 July 2008)

The Tribunal found that the proposed merger would result in only a minor increase in market share in the supply of bus chassis, heavy commercial vehicles, and extra heavy commercial vehicles in South Africa. The merged entity's post-merger market shares remain low, and the markets are not highly concentrated. The Commission's investigation revealed no evidence of past collusion or coordinated effects among Volkswagen, Scania, and MAN, and no cross-directorships exist. The presence of numerous competitors further reduces the likelihood of anti-competitive conduct. There are no public interest concerns. Accordingly, the merger is unlikely to substantially prevent or lessen competition and...

Citation
[2008] ZACT 58
Parties
Applicant: Volkswagen Aktiengesellschaft; Respondent: Scania Aktiebolag
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2008
Case Number
47/LM/Apr08
Procedural Posture
Merger Clearance / Merger Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, Y Carrim, N Manoim
Legal Topics
Merger Clearance, Market Share Analysis, Horizontal Overlap, Public Interest, Coordinated Effects
Competition Law Commercial and Corporate Merger Clearance Market Share Analysis Horizontal Overlap Public Interest Coordinated Effects

Case Brief

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Parties

Volkswagen Aktiengesellschaft

Applicant

Scania Aktiebolag

Respondent

Procedural Posture

Merger Clearance / Merger Approval

Legal Issues

  1. 1 Does the proposed merger between Volkswagen Aktiengesellschaft and Scania Aktiebolag substantially prevent or lessen competition in the relevant South African markets?
  2. 2 Is there a risk of coordinated effects or collusion arising from the increased shareholding and voting rights?
  3. 3 Are there any public interest concerns arising from the transaction?

Ratio Decidendi

The Tribunal found that the proposed merger would result in only a minor increase in market share in the supply of bus chassis, heavy commercial vehicles, and extra heavy commercial vehicles in South Africa. The merged entity's post-merger market shares remain low, and the markets are not highly concentrated. The Commission's investigation revealed no evidence of past collusion or coordinated effects among Volkswagen, Scania, and MAN, and no cross-directorships exist. The presence of numerous competitors further reduces the likelihood of anti-competitive conduct. There are no public interest concerns. Accordingly, the merger is unlikely to substantially prevent or lessen competition and...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Volkswagen Aktiengesellschaft and Scania Aktiebolag is approved without conditions.