Associated Motor Holdings (Pty) Ltd v Goscor Cleaning Equipment (Pty) Ltd and Another (13/LM/MAR10) [2010] ZACT 34 (20 May 2010)

The Competition Tribunal of South Africa unconditionally approved the acquisition by Associated Motor Holdings (Pty) Ltd (AMH) of a 65% shareholding in Goscor Cleaning Equipment (Pty) Ltd and Uvundlu Investments (Pty) Ltd on 18 May 2010. The merged entity is expected to have a 3% market share in the supply of generators (including petrol generators of 15KVA or less) and faces competition from major players like Honda South Africa, Turner Morris, and Yamaha. The transaction was deemed unlikely to substantially prevent or lessen competition, with no significant public interest concerns identified.

The Competition Tribunal of South Africa evaluated whether the acquisition of Goscor Cleaning Equipment and Uvundlu Investments by Associated Motor Holdings would significantly hinder competition in the supply of generators, particularly petrol generators of 15KVA or less. The tribunal concluded the merged entity's market share (approximately 3%) and existing competition from other firms and Chinese imports rendered the transaction unlikely to harm competition.

The Competition Tribunal approved the acquisition by Associated Motor Holdings (Pty) Ltd of shares in Goscor Cleaning Equipment (Pty) Ltd and Uvundlu Investments (Pty) Ltd. The tribunal found that the transaction is unlikely to substantially prevent or lessen competition in any relevant market, given the merged entity's small market share (approximately 3% in the generator supply market) and the presence of significant competitors and Chinese imports. No significant public interest issues were identified.

The Competition Tribunal applied the standard of whether the merger would substantially prevent or lessen competition in relevant markets, finding the merged entity's market position insignificant due to small market share and competitive pressures from other firms and Chinese imports.