Barrick Gold Corporation v Randgold Resources Ltd (LM1930ct18) [2018] ZACT 48 (16 November 2018)

Barrick Gold Corporation v Randgold Resources Ltd (LM1930ct18) [2018] ZACT 48 (16 November 2018)

The Tribunal found that the proposed merger between Barrick Gold Corporation and Randgold Resources Ltd would not result in a substantial lessening or prevention of competition in any market, given the low combined post-merger market shares in the international gold and silver markets. The merging parties would continue to face competition from other major mining companies. Furthermore, the Tribunal was satisfied that the transaction would not have any adverse effects on employment, as no retrenchments were anticipated and employee concerns were adequately addressed. No other public interest issues were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2018] ZACT 48
Parties
Applicant: Barrick Gold Corporation; Respondent: Randgold Resources Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 November 2018
Case Number
LM1930ct18
Procedural Posture
Large Merger Application / Approval Hearing
Outcome
The large merger between Barrick Gold Corporation and Randgold Resources Ltd was unconditionally approved.
Judges
Enver Daniels, lmraan Valodia
Legal Topics
Large Merger Notification, Market Share Analysis, Public Interest Assessment, Employment Effects
Competition Law Commercial and Corporate Large Merger Notification Market Share Analysis Public Interest Assessment Employment Effects

Case Brief

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Parties

Barrick Gold Corporation

Applicant

Randgold Resources Ltd

Respondent

Procedural Posture

Large Merger Application / Approval Hearing

Legal Issues

  1. 1 Whether the proposed merger between Barrick Gold Corporation and Randgold Resources Ltd is likely to substantially lessen or prevent competition in any market.
  2. 2 Whether the proposed transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed merger between Barrick Gold Corporation and Randgold Resources Ltd would not result in a substantial lessening or prevention of competition in any market, given the low combined post-merger market shares in the international gold and silver markets. The merging parties would continue to face competition from other major mining companies. Furthermore, the Tribunal was satisfied that the transaction would not have any adverse effects on employment, as no retrenchments were anticipated and employee concerns were adequately addressed. No other public interest issues were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

The large merger between Barrick Gold Corporation and Randgold Resources Ltd was unconditionally approved.

Orders

  • The proposed transaction is approved unconditionally.