Armgold / Harmony Freegold Joint Venture Company (Pty) Ltd and St Helena Gold Mines Limited (54/LM/Aug02) [2002] ZACT 55 (10 October 2002)

Armgold / Harmony Freegold Joint Venture Company (Pty) Ltd and St Helena Gold Mines Limited (54/LM/Aug02) [2002] ZACT 55 (10 October 2002)

The Tribunal found that the relevant market is the international market for the production and supply of gold, which is not concentrated and in which individual producers are price takers. The merged entity's market share post-merger would remain relatively small, and the transaction would not enable the parties to influence the international gold price. Although the transaction would result in up to 600 job losses, the extension of the mine's lifespan by two years would increase the total number of man years worked by 36%. No other public interest issues were identified. The Tribunal agreed with the Competition Commission's recommendation and unconditionally approved the merger.

Citation
[2002] ZACT 55
Parties
Applicant: Armgold / Harmony Freegold Joint Venture Company (Pty) Ltd; Respondent: St Helena Gold Mines Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 October 2002
Case Number
54/LM/Aug02
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger unconditionally approved.
Judges
N. Manoim, D. Lewis, P. Maponya
Legal Topics
Large Merger Review, Market Definition, Public Interest, Job Losses, International Gold Market
Competition Law Large Merger Review Market Definition Public Interest Job Losses International Gold Market

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 3 Authorities cited 3 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Armgold / Harmony Freegold Joint Venture Company (Pty) Ltd

Applicant

St Helena Gold Mines Limited

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the merger between Freegold and St Helena Gold Mines Limited is likely to substantially lessen or restrict competition in the relevant market.
  2. 2 Whether the transaction raises any significant public interest concerns, including employment impacts.

Ratio Decidendi

The Tribunal found that the relevant market is the international market for the production and supply of gold, which is not concentrated and in which individual producers are price takers. The merged entity's market share post-merger would remain relatively small, and the transaction would not enable the parties to influence the international gold price. Although the transaction would result in up to 600 job losses, the extension of the mine's lifespan by two years would increase the total number of man years worked by 36%. No other public interest issues were identified. The Tribunal agreed with the Competition Commission's recommendation and unconditionally approved the merger.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Armgold / Harmony Freegold Joint Venture Company (Pty) Ltd and St Helena Gold Mines Limited is unconditionally approved.