COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA
Case Number: 23/LM/Feb00
In the large merger between
Ford Motor Company
and
South African Motor Corporation (Pty) Ltd
Reasons for the Competition Tribunal’s Decision
Approval
The Competition Tribunal issued a Merger Clearance Certificate on 5 April 2000
approving the merger between Ford Motor Company and South African Motor
Corporation (Pty) Ltd (Samcor) without conditions. The reasons for our decision
to approve the merger are set out below.
The merger transaction
Ford is purchasing all the issued and outstanding shares in Samcor held by
Anglo South Africa (Pty) Ltd and the Samcor Employees Trust (SET). Anglo
South Africa holds 45% and SET 10% of the shares in Samcor, with the balance
held by the Ford Motor Company. The transaction will be completed in two
stages and will be finalized by 31 December 2001. Samcor will become a wholly
owned subsidiary of Ford upon purchase by Ford of all the shares currently held
by Anglo South Africa and SET.
Ford intends to continue to conduct the business of Ford (through Samcor and
Ford Credit SA) in substantially the same manner as was conducted prior to the
transaction. Ford does not intend to decrease the staffing level, type of business
performed or the way in which Samcor’s business operates in South Africa.
Evaluating the merger
Ford, which is the second largest motor manufacturer in the world, is active in
South Africa only in respect of its sales to Samcor and by virtue of its interests in
Samcor and Ford Credit SA. Ford does not supply products or services in South
Africa other than to these two companies.
The Tribunal agrees with the Competition Commission that the transaction would
not affect competition in any of the relevant product markets because Ford is
only increasing its shareholding in Samcor in which it is already holding a
significant interest. The Tribunal is also satisfied that the merger does not raise
any public interest concerns listed in section 16(3).
N.M. Manoim Date
Concurring: D.H. Lewis and S. Zilwa
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