The Competition Act, 89 of 1998 (“the Act”) vests the Competition Commission (“the Commission”) with powers to call for notification of small mergers within a period of six months following a merger’s implementation. In the proposed merger between Juta Bookshops (a division of Juta & Company Ltd) and Van Schaik (part of the Times Media Group), the parties notified the Commission voluntarily.

However, the Commission prohibited the proposed merger, citing the potential for abuse by the merged entity. It was found that owing to the way in which the market for academic books is structured, Van Schaik would have the ability, post-merger, to influence supply and demand at a number of universities, including Stellenbosch University, University of Cape Town, University of Johannesburg and the Tshwane University of Technology.

The case demonstrates the importance of assessing transactions from a competition law perspective even if they are classified as small mergers in terms of the Act.