Barnes Group Holdings (Pty) Ltd v Barnes Reinforcing (Pty) Ltd (LM1230ct19) [2020] ZACT 81 (20 February 2020)

Barnes Group Holdings (Pty) Ltd v Barnes Reinforcing (Pty) Ltd (LM1230ct19) [2020] ZACT 81 (20 February 2020)

The Tribunal found that the proposed merger presents both horizontal and vertical overlaps in the production and supply of reinforcing steel and mesh products. However, the merged entity would remain a relatively small player in the market, facing competition from several other firms. The Commission's investigation revealed no incentive or ability for the merged entity to foreclose downstream competitors, and Barnes Group is not a dominant supplier. Furthermore, the transaction would not adversely affect employment or raise other public interest concerns. Consequently, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition or negatively impact...

Citation
[2020] ZACT 81
Parties
Applicant: Barnes Group Holdings (Pty) Ltd; Respondent: Barnes Reinforcing (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 February 2020
Case Number
LM1230ct19
Procedural Posture
Merger Application / Approval and Reasons
Outcome
The merger was approved unconditionally.
Judges
Yasmin Carrim, Andiswa Ndoni, Halton Cheadle
Legal Topics
Merger Control, Horizontal Overlap, Vertical Overlap, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Overlap Public Interest Market Share Analysis

Case Brief

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Parties

Barnes Group Holdings (Pty) Ltd

Applicant

Barnes Reinforcing (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger between Barnes Group Holdings and Barnes Reinforcing is likely to substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the merger raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed merger presents both horizontal and vertical overlaps in the production and supply of reinforcing steel and mesh products. However, the merged entity would remain a relatively small player in the market, facing competition from several other firms. The Commission's investigation revealed no incentive or ability for the merged entity to foreclose downstream competitors, and Barnes Group is not a dominant supplier. Furthermore, the transaction would not adversely affect employment or raise other public interest concerns. Consequently, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition or negatively impact...

Court Disposition

The merger was approved unconditionally.

Orders

  • The proposed transaction between Barnes Group Holdings (Pty) Ltd and Barnes Reinforcing (Pty) Ltd is approved without conditions.