Zephyr German BidCo GmbH v Flender GmbH (LM164DEC20) [2021] ZACT 85 (1 March 2021)

Zephyr German BidCo GmbH v Flender GmbH (LM164DEC20) [2021] ZACT 85 (1 March 2021)

The Tribunal found that there are no horizontal overlaps between the activities of Carlyle and Flender, as Carlyle is not active in the manufacture or supply of mechanical and electrical products. No vertical overlaps were identified, and any existing supply relationships do not affect competition in South Africa. The Commission's investigation confirmed that the merger is unlikely to substantially prevent or lessen competition in any market. Furthermore, no public interest concerns, including employment impacts, were identified. Employee representatives and unions raised no objections. The Tribunal concluded that the transaction does not raise competition or public interest concerns and...

Citation
[2021] ZACT 85
Parties
Applicant: Zephyr German BidCo GmbH; Respondent: Flender GmbH
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 March 2021
Case Number
LM164DEC20
Procedural Posture
Merger Review / Approval
Outcome
The merger was unconditionally approved.
Judges
M Mazwai, E Daniels, AW Wessels
Legal Topics
Merger Notification, Horizontal Analysis, Vertical Analysis, Public Interest, Unconditional Approval
Competition Law Commercial and Corporate Merger Notification Horizontal Analysis Vertical Analysis Public Interest Unconditional Approval

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 2 Authorities cited 1 Party arguments 2
Sign in to unlock

Parties

Zephyr German BidCo GmbH

Applicant

Flender GmbH

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger between Zephyr German BidCo GmbH and Flender GmbH is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impacts.

Ratio Decidendi

The Tribunal found that there are no horizontal overlaps between the activities of Carlyle and Flender, as Carlyle is not active in the manufacture or supply of mechanical and electrical products. No vertical overlaps were identified, and any existing supply relationships do not affect competition in South Africa. The Commission's investigation confirmed that the merger is unlikely to substantially prevent or lessen competition in any market. Furthermore, no public interest concerns, including employment impacts, were identified. Employee representatives and unions raised no objections. The Tribunal concluded that the transaction does not raise competition or public interest concerns and...

Court Disposition

The merger was unconditionally approved.

Orders

  • The proposed transaction is approved without conditions.