China Baowu Steel Group Corporation Ltd v Sinosteel Group Corporation Ltd (LM187Feb23) [2023] ZACT 7 (14 March 2023)

Parties

Procedural Posture

Merger Control / Merger Approval

Legal Issues

1. 1 Whether the proposed merger between China Baowu Steel Group Corporation Ltd and Sinosteel Group Corporation Ltd should be approved under the Competition Act.
2. 2 Whether any conditions should be attached to the approval of the merger.

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.

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).