Commission blocks textbook reseller deal
The Competition Commission has blocked the acquisition of Juta Bookshops by Van Schaik Booksellers, a division of Times Media.
The Commission found that the proposed merger is likely to result in a substantial prevention or lessening of competition in the market for academic books.
Juta is a wholly owned subsidiary of listed group, Kagiso Media and claims to be the largest local publisher of quality student textbooks in the fields of commerce, accounting, communications, social science, health, education and the law.
This merger constituted a “small merger” in terms of the Competition Act.
The Commission said that, while small mergers are not subject to compulsory notification, it was notified voluntarily by the parties of the transaction.
In terms of the proposed merger, Van Schaik would obtain market power in the sale for academic books in the following universities: University of Stellenbosch; University of Cape Town; University of Johannesburg; Tshwane University of Technology Main; and Arcadia Campus.
Juta noted that Van Schaik Booksellers would also acquire all 10 Juta bookshops.
The Commission investigation included administering a questionnaire to students, the consumers of academic books, in five universities to understand the dynamics of the market and ascertain their views on the merger.
The Commission concluded that the merger created a market structure susceptible to abuse and would be detrimental to students by reducing choice and resulting in higher prices for academic books.
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