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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.¹ 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.²

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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