China Baowu Steel Group Corporation Ltd v Sinosteel Group Corporation Ltd (LM187Feb23) [2023] ZACT 7 (14 March 2023)
- Citation
- [2023] ZACT 7
- Status
- Order
- Jurisdiction
- South Africa
- Court
- Competition Tribunal
- Panel
- J Wilson, L Mncube, F Tregenna
- Case number
- LM187Feb23
More details
- Court
- Competition Tribunal
- Panel
- J Wilson, L Mncube, F Tregenna
- Case number
- LM187Feb23
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Tribunal found that the merger between China Baowu Steel Group Corporation Ltd and Sinosteel Group Corporation Ltd does not substantially prevent or lessen competition in any relevant market. The Competition Commission recommended approval, and no evidence was presented to suggest adverse effects on competition or public interest. The Tribunal therefore approved the merger in terms of section 16(2)(a) of the Competition Act, subject to the conditions set out in the order.
Court disposition
Merger approved subject to conditions.
Orders
- The merger between China Baowu Steel Group Corporation Ltd and Sinosteel Group Corporation Ltd is approved in terms of section 16(2)(a) of the Competition Act.
- A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).
02
Material facts
Parties
China Baowu Steel Group Corporation Ltd
ApplicantSinosteel Group Corporation Ltd
Respondent03
Procedural history
Posture
Merger Control / Merger Approval
04
Questions and positions
Legal issues
- 01
Whether the proposed merger between China Baowu Steel Group Corporation Ltd and Sinosteel Group Corporation Ltd should be approved under the Competition Act.
- 02
Whether any conditions should be attached to the approval of the merger.
Party arguments
- Applicant
- The applicant submitted that the merger complies with the requirements of the Competition Act and does not substantially prevent or lessen competition in any relevant market. The applicant argued that the transaction would not result in negative public interest effects and requested unconditional approval.
- Respondent
- The respondent did not oppose the merger and agreed with the applicant's submissions. The respondent confirmed that all relevant information had been provided and that the merger would not adversely affect competition or public interest.
05
Court’s reasoning
Legal principles
- 01
Competition Act 89 of 1998, section 16(2)
A merger may be approved if it does not substantially prevent or lessen competition, or if any negative effects can be remedied by conditions.
- 02
Competition Act 89 of 1998, section 16(3)
The Tribunal may revoke approval if it was granted on the basis of incorrect information, deceit, or breach of obligations attached to the approval.
06
Ratio, limits and disposition
Ratio decidendi
The Tribunal found that the merger between China Baowu Steel Group Corporation Ltd and Sinosteel Group Corporation Ltd does not substantially prevent or lessen competition in any relevant market. The Competition Commission recommended approval, and no evidence was presented to suggest adverse effects on competition or public interest. The Tribunal therefore approved the merger in terms of section 16(2)(a) of the Competition Act, subject to the conditions set out in the order.
Obiter and limits
- The Tribunal retains the authority to revoke this approval if it is later found that the decision was based on incorrect information, deceit, or breach of conditions.
Court disposition
Merger approved subject to conditions.
- The merger between China Baowu Steel Group Corporation Ltd and Sinosteel Group Corporation Ltd is approved in terms of section 16(2)(a) of the Competition Act.
- A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).
Source and reliance status
Competition Tribunal
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Competition Tribunal
Order
COMPETITION
TRIBUNAL OF SOUTH AFRICA
Case No.: LM187Feb23
In the matter between:
China Baowu Steel Group Corporation Ltd
Primary Acquiring Firm
And
Sinosteel Group Corporation Ltd
Primary Target Firm
Panel:
J Wilson (Presiding Member) L Mncube (Tribunal Member)
F Tregenna (Tribunal Member)
Heard on:
14 March 2023
Decided on: 14 March 2023
ORDER
Further to the recommendation of the Competition Commission in terms of section 14A(1)(b) of the Competition Act, 1998 (“the Act”) the Competition Tribunal orders that–
1. the merger between the abovementioned parties be approved in terms of section 16(2)(a) of the Act; and
2. a Merger Clearance Certificate be issued in terms of Competition Tribunal Rule 35(5)(a).
You applied to the Competition Commission on 28 December 2022 for merger approval in accordance with Chapter 3 of the Competition Act.
After reviewing all relevant information, and the recommendation or decision of the Competition Commission, the Competition Tribunal
approves the merger in terms of section 16(2) of the Act, for the reasons set out in the Reasons for Decision.
This approval is subject to: no conditions.the conditions listed on the attached sheet.
The Competition Tribunal has the authority in terms of section 16(3) of the Competition Act to revoke this approval if
a) it was granted on the basis of incorrect information for which a party to the merger was responsible.
b) the approval was obtained by deceit.
c) a firm concerned has breached an obligation attached to this approval.
The Registrar, Competition Tribunal
This form is prescribed by the Minister of Trade and Industry in terms of section 27 (2) of the Competition Act 1998 (Act No. 89 of 1998).
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