COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 92/LM/Aug08
In the matter between:
RTZ Zeply 5504 (Pty) Ltd Acquiring Firm
and
Dynamic Bedding (Pty) Ltd Target Firms
Dyna Mattress (Pty) Ltd
Panel : D Lewis (Presiding Member), Y Carrim (Tribunal
Member) and N Manoim (Tribunal Member)
Heard on : 8 October 2008
Order issued on : 8 October 2008
Reasons issued on : 24 November 2008
Reasons for Decision
Introduction
[1] On 8 October 2008 the Tribunal approved the acquisition by RZT Zeply 5504
(Pty) Ltd of Dynamic Bedding (Pty) Ltd and Dyna Matress (Pty) Ltd. The
reasons follow below.
The transaction and parties
[2] RTZ Zeply 5504 (Pty) Ltd (“RTZ Zelpy”) is a newly formed company which is
controlled by Corvest 6 (Pty) Ltd, a subsidiary of FirstRand Limited.
[3] The primary target firms are Dynamic Bedding (Pty) Ltd (“Dynamic Bedding”)
and Dyna Matress (Pty) Ltd (“Dyna Mattress”) which are controlled by
Richard Meyer Family Trust.
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[4] Post the transaction the shareholding in RTZ Zeply will be:
• Covest 6 80 %
• Management 20%
Rationale for the transaction
[5] According to the owner of the target firms the transaction presents an ideal
opportunity to exit the businesses while ensuring management’s participation.
Corvest regards the transaction as an attractive investment opportunity.
Effect on Competition
[6] There is no product overlap in the activities of the merging parties. Dynamic
Bedding and Dyna Mattress are engaged in the manufacture, distribution and
marketing of a wide range of bed bases and mattresses which is sold
exclusively to 98 independently owned Bed City and Bed Shop franchisees
located throughout South Africa. RTZ Zeply is a newly formed shelf company
which has not traded before. It forms part of the FirstRand Group which is a
specialist banking group that provides a diverse range of financial products
and services. It is not involved in the target firms’ product markets.
[7] The proposed transaction is therefore unlikely to substantially prevent or
lessen competition.
PUBLIC INTEREST
[8] The transaction does not raise any significant public interest concerns.
___________________ 24 November 2008
D Lewis Date
N Manoim and Y Carrim concurring.
Tribunal Researcher: R Badenhorst
For the merging parties: Cliffe Dekker Hofmeyr
For the Commission: K Mahlakoane and A Constantinou
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