Aveng Limited and LTA Limited (84/LM/Aug00) [2000] ZACT 45 (23 October 2000)

Aveng Limited and LTA Limited (84/LM/Aug00) [2000] ZACT 45 (23 October 2000)

The Tribunal found that the relevant markets were building construction, mining contracting, civil engineering, and mechanical/electrical/instrumentation. Both the parties and the Commission agreed on these markets, with the Commission further segmenting by project size. Despite relatively high market shares in some segments, the Tribunal accepted that the presence of many competitors, the openness of the market to global firms, and the public tender process prevented the acquisition of market power. The Tribunal also found no public interest concerns, as the firms would operate independently and no employment losses were anticipated. Accordingly, the merger was approved without conditions.

Citation
[2000] ZACT 45
Parties
Applicant: Aveng Limited; Respondent: LTA Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 October 2000
Case Number
84/LM/Aug00
Procedural Posture
Large Merger Review / Merger Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, P.E. Maponya
Legal Topics
Large Merger Review, Market Definition, Barriers to Entry, Public Interest Considerations, Countervailing Power
Competition Law Commercial and Corporate Large Merger Review Market Definition Barriers to Entry Public Interest Considerations Countervailing Power

Case Brief

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Parties

Aveng Limited

Applicant

LTA Limited

Respondent

Procedural Posture

Large Merger Review / Merger Approval

Legal Issues

  1. 1 Does the merger between Aveng Limited and LTA Limited substantially prevent or lessen competition in any relevant market?
  2. 2 Are there any public interest concerns arising from the merger?

Ratio Decidendi

The Tribunal found that the relevant markets were building construction, mining contracting, civil engineering, and mechanical/electrical/instrumentation. Both the parties and the Commission agreed on these markets, with the Commission further segmenting by project size. Despite relatively high market shares in some segments, the Tribunal accepted that the presence of many competitors, the openness of the market to global firms, and the public tender process prevented the acquisition of market power. The Tribunal also found no public interest concerns, as the firms would operate independently and no employment losses were anticipated. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Aveng Limited and LTA Limited is approved without conditions.
  • A Merger Clearance Certificate is issued.