COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA
Case Number:19/LM/Dec99
In the large merger between
Ensemble Trading 184 (Pty) Ltd
and
part of the business of Murray and Roberts Limited
Reasons for the Competition Tribunal’s Decision
Approval
The Competition Tribunal issued a Merger Clearance Certificate on 2 February
2000 approving the merger between Ensemble Trading 184 (Pty) Ltd and part of
the business of Murray and Roberts Limited without conditions. The reasons for
our decision to approve the merger are set out below.
The merger transaction
The primary acquiring firm is Ensemble Trading 184 (Pty) Ltd which is fully
owned by Colas Societe Anonyme (Colas France). Colas France has not
previously conducted business in South Africa. Colas France has registered
Ensemble Trading 184 on 30 September 1999 to buy the manufacture,
distribution, sale and application business relating to road and industrial binders
from Murray and Roberts as a going concern.
According to the Competition Commission Murray and Roberts regards this
transaction as an unbundling action while Colas France wants to enter the South
African market and gain control over the “Colas” trademark, which has been
licensed to Murray & Roberts.
Evaluating the merger
The Tribunal agrees with the Competition Commission that, in assessing this
merger, it is not crucial whether the product market is defined narrowly as
bituminous road surfacing treatment products or more widely as road surfacing
products. Ensemble Trading 184, a foreign company not represented in South
Africa, is acquiring part of the business of Murray & Roberts, a South African
business. Since Ensemble will merely be replacing Murray and Roberts as a
competitor in the relevant market the number of competitors in this market will
not change, nor will the concentration level change. The merger, furthermore,
does not raise public interest concerns since no jobs will be lost and a foreign
investor will enter the country.
D.H LEWIS Date
Presiding member
Concurring: N.M. Manoim and D.R. Terblanche