Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.
posted 1 year ago
On 20 May 2022, the South African Competition Commission (“Commission”) recommended that the Competition Tribunal (“Tribunal”) approve the merger between Shoprite Supermarkets (Pty) Ltd (“Shoprite”) and Massmart Holdings Limited (“Target Business”). The merger involves an acquisition of multiple grocery, liquor and wholesale “Massfresh stores” operating under the Massmart Rhino and Cambridge brands.
Concerns were raised in relation to the supply of grocery goods in the retail sector both nationally and in certain local markets. The Commission did not raise issues in relation to the wholesale sector.
The rationale submitted to the Commission in respect of the proposed transaction was that the various Masscash entities had been performing at a sub-standard level for numerous years. As the Target Business was not an essential component of Massmart, it was able to dispose of it in its totality.
Following its merger review, the Commission concluded that there was not sufficient evidence to come to the conclusion that smaller competitors are in direct competition with the larger national stores. It further concluded that by virtue of the Target Business being a national grocery chain, and in light of the meagre quantity of such national grocery chains in the market, the impact of the merger was likely to elevate concentration levels in relation to grocery contributions by nationwide chains.
The Commission concluded in its recommendation that, apart from the merging parties, competition in the wholesale low-income sector was limited with only two other national grocery chains competing. Accordingly, the Commission concluded that the proposed transaction would certainly raise competition concerns.
In light of the prevailing public interest concerns, the Commission placed significant emphasis on the potential consequences for the Target Business, which but for the merger would likely exit the market. In essence, the rapidly deteriorating financial performance of the Target Business and the expected loss of about 7000 jobs justified the Commission’s conclusion that the public interest criteria in favour of the proposed transaction outweighed the likely negative competition concerns. In an effort to avoid conditions, the merger attempted to assuage the Commission’s potential competition-related apprehensions by proffering remedies to promote competition in the extremely concentrated local grocery sector. The Commission was somewhat satisfied by this attempt, however, additionally required the merging parties to agree to a large set of public interest remedies intended to weigh against the concerns raised in relation to the Target Business’s potential departure from the market.
In short, the public interest commitments include that:
Of significance to South Africa’s broader approach to merger control, the Commission expressly noted would be more beneficial than not to approve the merger from a public interest perspective.
posted 3 hours ago
posted 1 day ago
posted 6 days ago
posted 1 week ago
posted 1 week ago
There are no results matching your search.
ResetSign up for the latest advisory briefings and news within Global Advisory Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox.
Naturally you can unsubscribe at any time.
Global Advisory Experts is dedicated to providing exceptional advisory services to clients around the world. With a vast network of highly skilled and experienced advisers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.
{{trans('Drag and drop your video here')}}
{{trans('Or')}}
{{trans('Click here')}} {{trans('to select and upload the video')}}
{{trans('Please leave your feedback')}}
{{trans(`You can record up to`)}} {{trans(`%s min.`, time(preference.max_video_length, 'notice'))}} {{ trans(`You can review your video before submitting`)}}
{{trans('You will be able to check your review before sending')}}
{{trans('Not ready to record?')}}
{{trans(`You can record up to`)}} {{trans(`%s min.`, time(preference.max_video_length, 'notice'))}} {{ trans(`You can review your video before submitting`) }}
⚠️ {{ trans(`Camera and microphone access is blocked!`) }}
{{ trans(`Please give`) }} {{ trans(`microphone and camera access`) }} {{ trans(`to record video`) }}
{{ trans(`This site isn’t using https protocol.`) }} {{ trans(`Reviews cannot be recorded or uploaded`) }}
{{trans(`Not ready to record?`)}}{{trans(`Upload Video`)}}
{{trans(`Changed your mind?`)}}{{trans(`Upload Video Instead`)}}
{{trans(`Changed your mind?`)}}{{trans(`Record a Video Review`)}}
{{trans(`Changed your mind?`)}}{{trans(`Record a Video Instead`)}}
{{trans('Not ready to record?')}}{{trans(`Upload Video`)}}
{{trans('Changed mind?')}}{{trans(`Record Video Instead`)}}
{{trans('Uploading video...')}}
{{ trans('Your Review has been successfully') }}
{{ trans('submitted') }}