The Tribunal has ruled against a recommendation by the Commission that the proposed merger between Masscash, a division of Massmart Ltd, and Finro Cash & Carry be prohibited. In terms of the proposed merger, Masscash sought to acquire a 75% interest in the business of Finro, which competes with Masscash in the wholesale grocery market in Port Elizabeth.
During the hearing, in which Cliffe Dekker Hofmeyr acted for the merging parties, Masscash argued that despite an increase in market share, it would be unable to raise prices after the merger due to competitive factors affecting the market.
Chris Charter, Director, Competition
Pia Harvey, Senior Associate, Competition