Anglo American PLC v De Beers SA (12/LM/Feb12) [2012] ZACT 24 (13 April 2012)

Anglo American PLC v De Beers SA (12/LM/Feb12) [2012] ZACT 24 (13 April 2012)

The Tribunal found that there is no horizontal overlap between Anglo American PLC and De Beers SA, as Anglo's only diamond interests are through its existing stake in De Beers. There are also no significant vertical relationships between the parties. The transaction merely increases Anglo American's shareholding from joint to sole control, without introducing new competitive dynamics. The merging parties confirmed that there would be no negative impact on employment and no other public interest concerns. Accordingly, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and raises no public interest concerns....

Citation
[2012] ZACT 24
Parties
Applicant: Anglo American PLC; Respondent: De Beers SA
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 April 2012
Case Number
12/LM/Feb12
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Taki Madima
Legal Topics
Merger Control, Sole Control Acquisition, Public Interest Assessment
Competition Law Commercial and Corporate Merger Control Sole Control Acquisition Public Interest Assessment

Case Brief

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Parties

Anglo American PLC

Applicant

De Beers SA

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition by Anglo American PLC of the Oppenheimer family's 40% interest in De Beers SA will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impact.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap between Anglo American PLC and De Beers SA, as Anglo's only diamond interests are through its existing stake in De Beers. There are also no significant vertical relationships between the parties. The transaction merely increases Anglo American's shareholding from joint to sole control, without introducing new competitive dynamics. The merging parties confirmed that there would be no negative impact on employment and no other public interest concerns. Accordingly, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and raises no public interest concerns....

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Anglo American PLC and De Beers SA is approved without conditions.