COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No.: 91/LM/Oct06
In the matter between:
EXTREME LIFESTYLE CENTRE (PTY) LTD Acquiring Firm
and
MILL AND MINE SPARES CC Target Firm
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Panel: Y Carrim (Presiding Member), M Moerane (Tribunal
Member), and T Orleyn (Tribunal Member)
Heard on: 22 November 2006
Order delivered on: 22 November 2006
Reasons delivered on: 5 December 2006
REASONS FOR APPROVAL
Approval
1] On 22 November 2006, the Competition Tribunal unconditionally
approved the proposed merger between Extreme Lifestyle Centre (Pty)
Ltd and Mill and Mine Spares CC.
The parties and the merger transaction
2] Extreme Lifestyle Centre (Pty) Ltd (“Extreme”) is acquiring Mill and Mine
Spares CC (“Mill and Mine”) as a going concern.
3] The primary acquiring firm, Extreme, is a wholly owned subsidiary of
Super Group Holdings (Pty) Ltd which in turn is one of the subsidiaries of
Super Group Ltd, collectively referred to as Super Group. Super Group’s
largest shareholders are the Public investment Corporation (17.45%), Old
Mutual PLC (10.88%) and Peu Group (Pty) Ltd (9.95%), a BEE group. A
single shareholder does not control it.
4] The primary target firm, Mill and Mine, is a closed corporation that is
jointly controlled by Richard and Kenneth Terry, each owning 50%
interest.
Rationale for the transaction
5] The proposed transaction provides Mill and Mine with the required
working capital to enable it to acquire cranes from manufacturers abroad
so as to satisfy the local demand. It also presents Mill and Mine with an
opportunity to become part of a BEE group.
6] According to Extreme the transaction not only provides it with the
opportunity to expand its product range so as to include the sale of cranes
but also to gain the expertise and knowhow of Richard and Kenneth
Terry.
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Competition analysis
7] Super Group is involved in the provision of a wide range of products and
services such as supply management services, long distance and cross
border transport brokerage, fleet solutions for transportation of bulk items
such as foodstuffs, consumables and agricultural produce, retail supply
chain business, commercial and passenger dealership businesses and
certain inhouse treasury and insurance services.
8] Mills and Mine is involved in the import and sale of cranes for use in
mining and construction.
9] There is no overlap in the activities of the merging parties and the
proposed transaction is therefore unlikely to substantially prevent or
lessen competition in the relevant market.
Public Interest
10] There are no job losses or any other significant public interests issues that
arise from the transaction.
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Y Carrim
Presiding Member
Concurring: M Moerane and T Orleyn
Tribunal Researcher: R Badenhorst
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For the merging parties: P Coetser (Brink Cohen Le Roux)
For the Commission: M Ngobese (Mergers & Acquisitions)
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