COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No:17/LM/Feb12
In the matter between:
Unitrans Supply Chain Solutions (Pty) Ltd Acquiring Firm
And
Tanzer Transport (Pty) Ltd Target Firm
Panel : Yasmin Carrim (Presiding Member),
Andiswa Ndoni (Tribunal Member)
and Taki Madima (Tribunal Member)
Heard on : 28 March 2012
Reasons issued on : 03 May 2012
Reasons for Decision
Approval
1] On 28 March 2012 the Competition Tribunal (“Tribunal”) approved
the merger between Unitrans Supply Chain Solutions (Pty) Ltd and
Tanzer Transport (Pty) Ltd. The reasons for approval follow below.
1
The Transaction
2] The primary acquiring firm is Unitrans Supply Chain Solutions (Pty)
Ltd (“Unitrans”), a company incorporated in terms of the company
laws of the Republic of South Africa. Unitrans is a wholly-owned
subsidiary of Unitrans Holdings (Pty) Ltd (“Unitrans” Holdings).
Unitrans Holdings is a wholly-owned subsidiary of Steinhoff
Investments Holdings Limited (“Steinhoff”). Unitrans forms part of
the Steinhoff group which is a multinational, integrated lifestyle
supplier which focuses on manufacturing and sourcing, logistic,
furniture and household retail goods in Southern Africa, Europe and
Australia. Unitrans provides logistic services in South Africa.
3] The primary target firm is Tanzer Transport (Pty) Ltd (“Tanzer”).
Tanzer is a privately owned company incorporated in terms of the
company laws of the Republic of South Africa. Tanzer provides
transport services, in particular, warehousing and secondary
distribution services to Pick n’ Pay.
The Rationale
4] In terms of the Sale of Business Agreement, Unitrans intends to
acquire control of part of the business of Tanzer, including a fleet of
temperature controlled refrigerated vehicles and drivers and people
managing and controlling the site. Pursuant to the implementation
of the proposed transaction, Unitrans will control the temperature
controlled refrigerated vehicles and employees of Tanzer.
The relevant market and the impact on competition
5] The proposed transaction results in a horizontal overlap and vertical
integration. The horizontal overlap occurs in respect of the
distribution of perishable food in the temperature-controlled
refrigerated vehicles.
The vertical relationship occurs as the fleet of Tanzer, has been
subcontracted by Unitrans to transport perishable food in the
temperature-controlled refrigerated vehicles from Pick n Pay
2
Distribution Centres to various Pick n Pay stores located country wide
(except KwaZulu Natal). The service was provided pre-merger and will
continue post merger.
The Commission is of the view that the proposed transaction is unlikely
to substantially prevent or lessen competition as the merged entity’s
market share post-merger will be 9%. The Commission therefore,
recommends that the proposed transaction be approved without
conditions.
CONCLUSION
6] There are no significant public interest issues and we accordingly
approve the transaction.
____________________ 03 May 2012
Y Carrim DATE
Andiswa Ndoni and Taki Madima concurring.
Tribunal Researcher: Thabani Ngilande
For the merging parties: Cliffe Dekker Hofmeyr
For the Commission: Mogalane Matsimela
3