Air Products South Africa (Pty) Ltd v Sasol Chemical Industries Lts ("SCI") In respect of the A2100 Air Seperation Plant owned by SCI (019026) [2014] ZACT 50 (28 August 2014)

Air Products South Africa (Pty) Ltd v Sasol Chemical Industries Lts ("SCI") In respect of the A2100 Air Seperation Plant owned by SCI (019026) [2014] ZACT 50 (28 August 2014)

The Tribunal found that the proposed acquisition would not result in a substantial prevention or lessening of competition in either the tonnage market for the supply of gaseous oxygen and nitrogen or the bulk supply market for liquid nitrogen and argon. The negligible volumes available to the open market would continue to be supplied post-merger, and Air Products SA would continue to face competition from other market participants. The Letter of Intent did not contain any terms that raised competition concerns, and no public interest issues were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2014] ZACT 50
Parties
Applicant: Air Products South Africa (Pty) Ltd; Respondent: Sasol Chemical Industries Ltd ("SCI")
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 August 2014
Case Number
019026
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Imraan Valodia
Legal Topics
Merger Control, Market Definition, Horizontal Overlap, Public Interest, Market Share Accretion
Competition Law Merger Control Market Definition Horizontal Overlap Public Interest Market Share Accretion

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Parties

Air Products South Africa (Pty) Ltd

Applicant

Sasol Chemical Industries Ltd ("SCI")

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of the A2100 Air Separation Plant by Air Products SA from SCI is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether any public interest concerns arise from the proposed transaction.
  3. 3 Whether the terms of the Letter of Intent raise any competition concerns.

Ratio Decidendi

The Tribunal found that the proposed acquisition would not result in a substantial prevention or lessening of competition in either the tonnage market for the supply of gaseous oxygen and nitrogen or the bulk supply market for liquid nitrogen and argon. The negligible volumes available to the open market would continue to be supplied post-merger, and Air Products SA would continue to face competition from other market participants. The Letter of Intent did not contain any terms that raised competition concerns, and no public interest issues were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The acquisition by Air Products SA of the A2100 Air Separation Plant from SCI is approved without conditions.