Aquarius Platinum SA (Pty) Ltd and Another v First Platinum (Pty) Ltd (29/LM/Mar09) [2009] ZACT 29 (7 May 2009)

Aquarius Platinum SA (Pty) Ltd and Another v First Platinum (Pty) Ltd (29/LM/Mar09) [2009] ZACT 29 (7 May 2009)

The Tribunal found that the proposed merger between Aquarius Platinum SA (Pty) Ltd, Rustenburg Platinum Mine Ltd, and First Platinum (Pty) Ltd would not substantially prevent or lessen competition in any of the relevant markets for platinum group metals. The target firm, First Platinum, is a small player not yet in production, and the post-merger market share accretion is low. The change in Herfindahl-Hirschman Index (HHI) for all relevant markets is below the threshold of concern. No public interest concerns were identified. Accordingly, the merger was approved.

Citation
[2009] ZACT 29
Parties
Applicant: Aquarius Platinum SA (Pty) Ltd; Applicant: Rustenburg Platinum Mine Ltd; Respondent: First Platinum (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 May 2009
Case Number
29/LM/Mar09
Procedural Posture
Merger Application / Reasons for Decision
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Calculation
Competition Law Merger Control Market Definition Public Interest Market Share Calculation

Case Brief

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Parties

Aquarius Platinum SA (Pty) Ltd

Applicant

Rustenburg Platinum Mine Ltd

Applicant

First Platinum (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the proposed merger between Aquarius Platinum SA (Pty) Ltd, Rustenburg Platinum Mine Ltd, and First Platinum (Pty) Ltd would not substantially prevent or lessen competition in any of the relevant markets for platinum group metals. The target firm, First Platinum, is a small player not yet in production, and the post-merger market share accretion is low. The change in Herfindahl-Hirschman Index (HHI) for all relevant markets is below the threshold of concern. No public interest concerns were identified. Accordingly, the merger was approved.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Aquarius Platinum SA (Pty) Ltd, Rustenburg Platinum Mine Ltd, and First Platinum (Pty) Ltd is approved.
  • No conditions are imposed.