Acerinox S.A and Newco in re: Columbus Stainless [2002] ZACT 2 (16 January 2002)

Acerinox S.A and Newco in re: Columbus Stainless [2002] ZACT 2 (16 January 2002)

The Tribunal found that Columbus Stainless holds 90% of the South African stainless steel market, with the remainder being imports. Acerinox's share in South Africa is less than 2%. Even if the market is defined nationally, the transaction's effect is minimal due to Acerinox's insignificant local presence. Globally, the merged entity would hold only 7.9% of the market, with eight other international competitors remaining. The merger does not raise any public interest concerns under section 26(3) of the Competition Act. Accordingly, the Tribunal approved the merger without conditions.

Citation
[2002] ZACT 2
Parties
Applicant: Acerinox S.A; Applicant: Newco (a consortium comprising Highveld Steel & Vanadium Corporation Ltd, Samancor Ltd and the Industrial Development Corporation of South Africa)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 January 2002
Case Number
58/LM/Oct01
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
N.M Manoim, C. Qunta, P.E Maponya
Legal Topics
Large Merger Review, Market Definition, Public Interest, Foreign Investment
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Foreign Investment

Case Brief

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Parties

Acerinox S.A

Applicant

Newco (a consortium comprising Highveld Steel & Vanadium Corporation Ltd, Samancor Ltd and the Industrial Development Corporation of South Africa)

Applicant

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Acerinox S.A and Newco would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the merger raises any public interest concerns under section 26(3) of the Competition Act.

Ratio Decidendi

The Tribunal found that Columbus Stainless holds 90% of the South African stainless steel market, with the remainder being imports. Acerinox's share in South Africa is less than 2%. Even if the market is defined nationally, the transaction's effect is minimal due to Acerinox's insignificant local presence. Globally, the merged entity would hold only 7.9% of the market, with eight other international competitors remaining. The merger does not raise any public interest concerns under section 26(3) of the Competition Act. Accordingly, the Tribunal approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Acerinox S.A and Newco is approved without conditions.
  • A Merger Clearance Certificate is issued.