Anglogold Ashanti Ltd v First Uranium Corporation (84/LM/SEP11) [2011] ZACT 103 (8 December 2011)

Anglogold Ashanti Ltd v First Uranium Corporation (84/LM/SEP11) [2011] ZACT 103 (8 December 2011)

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in the markets for the production and supply of gold and uranium, given the low post-merger market shares and the global nature of these markets. The Tribunal also accepted the parties' submission that the transaction would not result in employment losses or raise other public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2011] ZACT 103
Parties
Applicant: AngloGold Ashanti Limited; Respondent: First Uranium Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 December 2011
Case Number
84/LM/SEP11
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Merle Holden, Medi Mokuena
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Competition Prevention or Lessening
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Competition Prevention or Lessening

Case Brief

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Parties

AngloGold Ashanti Limited

Applicant

First Uranium Corporation

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between AngloGold Ashanti Limited and First Uranium Corporation is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including employment losses.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in the markets for the production and supply of gold and uranium, given the low post-merger market shares and the global nature of these markets. The Tribunal also accepted the parties' submission that the transaction would not result in employment losses or raise other public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between AngloGold Ashanti Limited and First Uranium Corporation is approved without conditions.