WBHO Construction (Pty) Ltd v Roadspan Holdings (Pty) Ltd (79/LM/Nov09) [2010] ZACT 23; [2010] 1 CPLR 167 (CT) (23 March 2010)

WBHO Construction (Pty) Ltd v Roadspan Holdings (Pty) Ltd (79/LM/Nov09) [2010] ZACT 23; [2010] 1 CPLR 167 (CT) (23 March 2010)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. Roadspan is a relatively small player in the downstream market for road surfacing and rehabilitation services, and WBHO is a minor participant in the broader roads construction market. The Commission’s investigation confirmed the presence of numerous alternative suppliers in all relevant markets, and Roadspan lacks the capacity to supply all of WBHO’s needs, meaning WBHO would continue to source from competitors post-merger. The limited horizontal overlap and the mitigating effect of mobile asphalt plants further reduced any potential anti-competitive concerns. No...

Citation
[2010] ZACT 23
Parties
Applicant: WBHO Construction (Pty) Ltd; Respondent: Roadspan Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 March 2010
Case Number
79/LM/Nov09
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved without conditions.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Vertical Integration, Horizontal Overlap, Market Definition, Public Interest
Competition Law Commercial and Corporate Merger Control Vertical Integration Horizontal Overlap Market Definition Public Interest

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Parties

WBHO Construction (Pty) Ltd

Applicant

Roadspan Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of Roadspan Holdings (Pty) Ltd by WBHO Construction (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including potential retrenchments or job losses.
  3. 3 Whether the transaction gives rise to horizontal or vertical competition concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. Roadspan is a relatively small player in the downstream market for road surfacing and rehabilitation services, and WBHO is a minor participant in the broader roads construction market. The Commission’s investigation confirmed the presence of numerous alternative suppliers in all relevant markets, and Roadspan lacks the capacity to supply all of WBHO’s needs, meaning WBHO would continue to source from competitors post-merger. The limited horizontal overlap and the mitigating effect of mobile asphalt plants further reduced any potential anti-competitive concerns. No...

Court Disposition

The proposed merger is approved without conditions.

Orders

  • The acquisition by WBHO Construction (Pty) Ltd of Roadspan Holdings (Pty) Ltd is approved.
  • No conditions are attached to the approval.