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[2015] ZACT 129
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Barloworld Transport (Pty) Ltd v Aspen Logistic Services (Pty) Ltd (LM157Oct15) [2015] ZACT 129 (22 December 2015)
COMPETITION
TRIBUNAL OF SOUTH AFRICA
Case
No: LM1570ct15
In
the matter between:
BARLOWORLD
TRANSPORT
(PTY)
LTD
Primary Acquiring Firm
and
ASPEN
LOGISTIC
SERVICES
(PTY)
LTD
Primary Target Firm
Panel
: Norman Manoim (Presiding Member)
: Anton Roskam (Tribunal
Member)
: Andiswa Ndoni (Tribunal
Member)
Heard
on
: 15 December 2015
Order
Issued on
: 15 December 2015
Reasons
Issued on
: 22 December
2015
Reasons
for Decision
Approval
[1]
On 15 December 2015, the Competition Tribunal ("Tribunal")
approved the proposed transaction between Barloworld Transport
(Pty)
Ltd and Aspen Logistic Services (Ply} Ltd.
[2]
The reasons for approving the proposed transaction follow.
Parties
to proposed transaction
Primary
acquiring firm
[3]
The primary acquiring firm is Barloworld Transport (Ply)
Ltd
("BWT") a private company incorporated in
the Republic of South Africa. It is a logistics group and maintains
a
controlling interest in a number of transport companies in South
Africa.
[4]
The range of services offered by the BWT Group are extensive and
include line-haul transport services; dedicated transport services;
warehousing and distribution services; abnormal transport services;
fuel, gas and chemical transport services; and timber and cane
transport services.
[5]
BWT recently acquired
KLL
Group (Pty) Ltd which has resulted
in a minor overlap with the activities of the target firm.
KLL
Group currently conducts business as a multi-temperature food
distributor in South Africa.
Primary
target firm
[6]
The primary target firm is Aspen Logistics Services (Pty) Ltd
("Aspen"), a road transport and logistics company
involved
in the transportation of temperature controlled fast-moving consumer
goods in South Africa and neighboring countries.
Proposed
transaction
and
rationale
[7]
BWT intends to acquire a controlling interest of 51% in Aspen.
Following which BWT will have sole control over Aspen.
[8]
BWT submits that the proposed transaction will allow it to enter into
the market for temperature controlled distribution services
and
augment its current product offering.
[9]
Aspen submits that the proposed transaction presents an opportunity
for Aspen's shareholders and employees to be part of a larger
group,
with a broader product offering and access to a larger customer base.
Impact
on
competition
[10]
The Competition Commission ("Commission") submits that
there is no horizontal overlap in
the
activities of BWT and Aspen. However, the Commission did identify a
minor overlap with regards to the activities of the KLL
Group and
Aspen in the market for temperature controlled distribution services.
[11]
The Commission found that the market share
accretion within the relevant market was negligible.
The
merging parties are relatively small players in the market and would
continue to be constrained by market leaders such as Imperial
Cold
Logistics (Pty) Ltd, Vector Logistics Ltd, Clover S.A (Ply) Ltd,
Hestony Transport (Ply) Ltd, Unitrans Supply Chain Solutions
(Ply)
Ltd and Leiben Logistics (Pty) Ltd.
[12]
The Commission therefore concluded that the
proposed transaction is unlikely
to
substantially prevent or lessen competition in any relevant market.
[13]
We concur with the Commission's
conclusion that the proposed transaction
is unlikely to substantially prevent or lessen competition in
any relevant market.
Public
interest
[14]
The merging
parties
confirmed
that the proposed
transaction
will not result in
any
adverse
impact
on
employment.
[1]
[15]
The proposed transaction further raises no other public interest
concerns.
Conclusion
[16]
In light of the above, we conclude that the proposed transaction is
unlikely to substantially prevent or lessen competition
in any
relevant market. In addition, no public interest issues arise from
the proposed transaction. Accordingly, we approve the
proposed
transaction unconditionally.
22
December 2015
DATE
_______________________
Mr
Norman Manoim
Mr
Anton Roskam and Ms Andiswa Ndoni concurring
Tribunal
Researcher:
Karissa Moothoo Padayachie
For
the merging parties:
Bowman Gilfillan
For
the Commission:
Nolubabalo Myoli
[1]
Inter
alia
merger
record
page 3.