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Bidvest Group Ltd and Viamax (Pty) Ltd (65/LM/Jun07) [2007] ZACT 67 (18 September 2007)
.RTF of original document
COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 65/LM/Jun07
In the matter between:
The Bidvest Group Ltd
Acquiring Firm
And
Viamax (Pty) Ltd
Target Firm
Panel
:
D Lewis (Presiding Member), N Manoim (Tribunal
Member) and
Y Carrim (Tribunal Member)
Heard on
:
22 August 2007
Order issued on
:
22 August 2007
Reasons issued on
:
18 September 2007
Reasons for Decision
Approval
[1]
On 22 August 2007, the Tribunal approved the merger between Bidvest Group Ltd and Viamax (Pty) Ltd. The reasons follow below.
The Transaction
[2]
Bidvest Group Ltd (“Bidvest”) intends to acquire the entire issued share capital of Viamax (“Pty”) Ltd (“Viamax”), a fleet management service provider owned by Transnet Limited. Viamax owns two subsidiaries, Viamax Fleet Solutions (Pty) Ltd and Viamax Fleet Management (Pty) Ltd.
[3]
Bidvest is a public company listed on the JSE and has several subsidiaries worldwide. In South Africa Bidvest owns a fleet management company through McCarthy Fleet Services.
Rationale for the transaction
[4]
Transnet is currently disposing all the assets which it considers to be non-core to its business activities, including Viamax. Bidvest, as a relative
new entrant, wishes to gain a more competitive foothold in the South African fleet management services market and the acquisition
of Viamax presents it with such an opportunity.
The relevant market and the impact on competition
[5]
Both parties provide fleet management services to customers. These services include vehicle financing, vehicle maintenance, administration of vehicle licences and purchasing
and sale of vehicles. The geographic market is national.
[6]
97% of Viamax’s fleet management services were provided to Transnet and the remaining 3% to municipalities. It could therefore
be regarded as an in-house service provider of Transnet which did not compete in the open market. Post the transaction the merged
entity, with its market share of 12%, will compete more effectively with other participants in the market such as Imperial Fleet
Services which has a market share of 20%, Avis Fleet Services with a market share of 17% and Debis with 20%, to name but a few. Subsequent to the expiry of the five year exclusive contract Transnet will again invite participants to tender for this contract.
[7]
In light of the above we find that the transaction would not substantially prevent or lessen competition the relevant markets but rather enhance competition.
CONCLUSION
[8]
There are no significant public interest issues and we accordingly approve the transaction.
__________________
18 September 2007
N Manoim
Date
D Lewis and Y Carrim concurring
Tribunal Researcher:
R Badenhorst
For the merging parties:
Bowman Gilfillan Attorneys
For the Commission:
Makgale Mohlala and David Masilela
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