Acquarius Platinum SA (Pty) Ltd v Southern Booysendal Mining Right (52/LM/JUL11) [2011] ZACT 63 (31 August 2011)

Acquarius Platinum SA (Pty) Ltd v Southern Booysendal Mining Right (52/LM/JUL11) [2011] ZACT 63 (31 August 2011)

The Tribunal found that the proposed merger between Aquarius Platinum SA (Pty) Ltd and the Southern Booysendal Mining Right would not result in a substantial prevention or lessening of competition in the market for Platinum Group Metals. The parties' activities do not currently overlap, and even when future overlap occurs, the merged entity's market share will remain below 15%. Significant competitors exist in the market, and no public interest concerns, including employment losses, were identified. The Tribunal agreed with the Commission's assessment and approved the merger unconditionally.

Citation
[2011] ZACT 63
Parties
Applicant: Aquarius Platinum SA (Pty) Ltd; Respondent: Southern Booysendal Mining Right
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 August 2011
Case Number
52/LM/JUL11
Procedural Posture
Merger Review / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Large Merger, Market Definition, Public Interest, Mining Rights, Substantial Prevention or Lessening of Competition
Competition Law Commercial and Corporate Large Merger Market Definition Public Interest Mining Rights Substantial Prevention or Lessening of Competition

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Parties

Aquarius Platinum SA (Pty) Ltd

Applicant

Southern Booysendal Mining Right

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial prevention or lessening of competition in the market for Platinum Group Metals (PGMs).
  2. 2 Whether the merger raises any public interest concerns, including employment losses.

Ratio Decidendi

The Tribunal found that the proposed merger between Aquarius Platinum SA (Pty) Ltd and the Southern Booysendal Mining Right would not result in a substantial prevention or lessening of competition in the market for Platinum Group Metals. The parties' activities do not currently overlap, and even when future overlap occurs, the merged entity's market share will remain below 15%. Significant competitors exist in the market, and no public interest concerns, including employment losses, were identified. The Tribunal agreed with the Commission's assessment and approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Aquarius Platinum SA (Pty) Ltd and the Southern Booysendal Mining Right is approved without conditions.