Aquarius Platinum (South Africa) Corporate Services (Pty) Ltd v Platinum Mile Resources (Pty) Ltd (32/LM/Apr08) [2008] ZACT 50 (8 July 2008)

Aquarius Platinum (South Africa) Corporate Services (Pty) Ltd v Platinum Mile Resources (Pty) Ltd (32/LM/Apr08) [2008] ZACT 50 (8 July 2008)

The Tribunal found that the combined post-merger market shares of the parties in platinum, palladium, rhodium, and gold were not significant enough to raise competition concerns. The presence of other major competitors such as Anglo Platinum, Impala Platinum, Lonmin Platinum, and Northam Platinum ensures continued...

Source-derived case information.

Citation
[2008] ZACT 50
Parties
Applicant: Aquarius Platinum (South Africa) Corporate Services (Pty) Ltd; Respondent: Platinum Mile Resources (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 July 2008
Case Number
32/LM/Apr08
Procedural Posture
Merger Clearance / Reasons for Unconditional Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, Y Carrim, U Bhoola
Legal Topics
Horizontal Merger, Market Share Analysis, Vertical Integration, Public Interest, Pgm Market Definition
Competition Law Horizontal Merger Market Share Analysis Vertical Integration Public Interest Pgm Market Definition

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Parties

Aquarius Platinum (South Africa) Corporate Services (Pty) Ltd

Applicant

Platinum Mile Resources (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Reasons for Unconditional Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the market for platinum group metals.
  2. 2 Whether the transaction would result in significant vertical integration affecting competition.
  3. 3 Whether any public interest concerns arise from the merger.

Ratio Decidendi

The Tribunal found that the combined post-merger market shares of the parties in platinum, palladium, rhodium, and gold were not significant enough to raise competition concerns. The presence of other major competitors such as Anglo Platinum, Impala Platinum, Lonmin Platinum, and Northam Platinum ensures continued competition in the market. The possibility of vertical integration was investigated and found to be unlikely, as the PMR plant cannot treat dumps or tailings from AQP's mines without significant new investment. No public interest issues were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Aquarius Platinum (South Africa) Corporate Services (Pty) Ltd and Platinum Mile Resources (Pty) Ltd is approved without conditions.