Anglogold Limited and Driefontein Consolidated (Proprietary) Limited (66/LM/Nov03) [2004] ZACT 8; [2004] 1 CPLR 76 (CT) (4 February 2004)

Anglogold Limited and Driefontein Consolidated (Proprietary) Limited (66/LM/Nov03) [2004] ZACT 8; [2004] 1 CPLR 76 (CT) (4 February 2004)

The Tribunal found that the acquisition of Driefontein's mineral rights by Anglogold would not result in a substantial prevention or lessening of competition in the relevant market. The mineral rights in question represent a negligible portion of Driefontein's and Gold Fields' total reserves, and the post-merger market share increase for Anglogold is insignificant. Both parties are active only in the upstream production and supply of gold, not in downstream distribution. The structure of the gold market, with prices set internationally and producers acting as price takers, further mitigates any risk of anti-competitive effects. The transaction does not affect the ownership or operation of...

Citation
[2004] ZACT 8
Parties
Applicant: Anglogold Limited; Respondent: Driefontein Consolidated (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 February 2004
Case Number
66/LM/Nov03
Procedural Posture
Merger Approval / Decision
Outcome
Merger approved unconditionally.
Judges
D. Lewis, N. Manoim, P. Maponya
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Calculation
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Share Calculation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Anglogold Limited

Applicant

Driefontein Consolidated (Proprietary) Limited

Respondent

Procedural Posture

Merger Approval / Decision

Legal Issues

  1. 1 Whether the acquisition of Driefontein's mineral rights by Anglogold will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction will have any adverse public interest effects, including on employment.
  3. 3 Whether the merger will alter the competitive position or market share of the merging parties.

Ratio Decidendi

The Tribunal found that the acquisition of Driefontein's mineral rights by Anglogold would not result in a substantial prevention or lessening of competition in the relevant market. The mineral rights in question represent a negligible portion of Driefontein's and Gold Fields' total reserves, and the post-merger market share increase for Anglogold is insignificant. Both parties are active only in the upstream production and supply of gold, not in downstream distribution. The structure of the gold market, with prices set internationally and producers acting as price takers, further mitigates any risk of anti-competitive effects. The transaction does not affect the ownership or operation of...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Anglogold Limited and Driefontein Consolidated (Proprietary) Limited is approved without conditions.