Arcelor Mittal SA Ltd v Metal and Thabazimbi Mine (LM231Mar17) [2017] ZACT 25; [2017] 1 CPLR 209 (CT) (22 June 2017)

Arcelor Mittal SA Ltd v Metal and Thabazimbi Mine (LM231Mar17) [2017] ZACT 25; [2017] 1 CPLR 209 (CT) (22 June 2017)

The Tribunal found that the proposed merger between ArcelorMittal South Africa Limited and Thabazimbi Mine does not result in a substantial lessening of competition in the market for hematite iron ore. The merged entity's market share post-merger remains minor, and significant competitors such as Assmang Limited and Kumba Resources continue to operate in the market. The vertical relationship, wherein Thabazimbi Mine supplies all its iron ore to AMSA, does not raise foreclosure concerns due to the mine's negligible market share. The transaction is primarily a cost management strategy for AMSA to address rehabilitation liabilities and does not alter the competitive landscape. No adverse...

Citation
[2017] ZACT 25
Parties
Applicant: ArcelorMittal South Africa Limited; Respondent: Thabazimbi Mine
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 June 2017
Case Number
LM231Mar17
Procedural Posture
Merger Control / Approval of Large Merger
Outcome
The merger is approved unconditionally.
Judges
Norman Manoim, Enver Daniels, Imraan Valodia
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Substantial Lessening of Competition, Public Interest, Rehabilitation Liability
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationship Substantial Lessening of Competition Public Interest Rehabilitation Liability

Case Brief

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Parties

ArcelorMittal South Africa Limited

Applicant

Thabazimbi Mine

Respondent

Procedural Posture

Merger Control / Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed merger between ArcelorMittal South Africa Limited and Thabazimbi Mine is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment.
  3. 3 Whether the merger involves significant horizontal or vertical competition effects.

Ratio Decidendi

The Tribunal found that the proposed merger between ArcelorMittal South Africa Limited and Thabazimbi Mine does not result in a substantial lessening of competition in the market for hematite iron ore. The merged entity's market share post-merger remains minor, and significant competitors such as Assmang Limited and Kumba Resources continue to operate in the market. The vertical relationship, wherein Thabazimbi Mine supplies all its iron ore to AMSA, does not raise foreclosure concerns due to the mine's negligible market share. The transaction is primarily a cost management strategy for AMSA to address rehabilitation liabilities and does not alter the competitive landscape. No adverse...

Court Disposition

The merger is approved unconditionally.

Orders

  • The large merger between ArcelorMittal South Africa Limited and Thabazimbi Mine is approved without conditions.
  • All permanent employees of Thabazimbi Mine shall be transferred to ArcelorMittal South Africa Limited.