African Rainbow Minerals Limited v The Machadodorp Works ferrochrome and ferromanganese division of Assmang (Pty) Ltd (LM232Jan19) [2019] ZACT 6 (20 February 2019)

African Rainbow Minerals Limited v The Machadodorp Works ferrochrome and ferromanganese division of Assmang (Pty) Ltd (LM232Jan19) [2019] ZACT 6 (20 February 2019)

The Tribunal found that the proposed transaction did not give rise to a horizontal overlap, as ARM and the Target Business are considered a single economic entity. The transaction would not alter the pre-merger structure or increase ARM's market share. The Commission's investigation confirmed that the merger was unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that there would be no negative effects on employment and no other public interest concerns. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2019] ZACT 6
Parties
Applicant: African Rainbow Minerals Limited; Respondent: The Machadodorp Works ferrochrome and ferromanganese division of Assmang (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 February 2019
Case Number
LM232Jan19
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger was approved unconditionally.
Judges
Yasmin Carrim, Mondo Mazwai, lmraan Valodia
Legal Topics
Merger Notification, Substantial Lessening of Competition, Public Interest, Employment Effects
Competition Law Merger Notification Substantial Lessening of Competition Public Interest Employment Effects

Case Brief

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Parties

African Rainbow Minerals Limited

Applicant

The Machadodorp Works ferrochrome and ferromanganese division of Assmang (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed merger raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction did not give rise to a horizontal overlap, as ARM and the Target Business are considered a single economic entity. The transaction would not alter the pre-merger structure or increase ARM's market share. The Commission's investigation confirmed that the merger was unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that there would be no negative effects on employment and no other public interest concerns. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed merger was approved unconditionally.

Orders

  • The proposed transaction between African Rainbow Minerals Limited and the Machadodorp Works ferrochrome and ferromanganese division of Assmang (Pty) Ltd is approved without conditions.