Dow Chemical Company and Union Carbide Corporation (50/LM/Apr00) [2000] ZACT 24 (2 June 2000)

Dow Chemical Company and Union Carbide Corporation (50/LM/Apr00) [2000] ZACT 24 (2 June 2000)

The Tribunal found that the merger between Dow Chemical Company and Union Carbide Corporation does not raise competition concerns in South Africa, as the relevant products are fully imported and the merger has already been approved in other jurisdictions where the products are manufactured. The overlap in product markets is academic, given the international nature of the transaction and the limited powers of the Tribunal in such circumstances. Furthermore, the Commission's recommendation to approve the merger was accepted, and no significant public interest issues were identified. Accordingly, the merger was approved without conditions.

Citation
[2000] ZACT 24
Parties
Applicant: The Dow Chemical Company; Respondent: Union Carbide Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 June 2000
Case Number
50/LM/Apr00
Procedural Posture
Large Merger Review / Merger Clearance
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, C Qunta, U. Bhoola
Legal Topics
Large Merger Review, Product Market Definition, International Merger, Public Interest Considerations
Competition Law Commercial and Corporate Large Merger Review Product Market Definition International Merger Public Interest Considerations

Case Brief

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Parties

The Dow Chemical Company

Applicant

Union Carbide Corporation

Respondent

Procedural Posture

Large Merger Review / Merger Clearance

Legal Issues

  1. 1 Whether the merger between Dow Chemical Company and Union Carbide Corporation raises competition concerns in the relevant South African market.
  2. 2 Whether the merger raises any significant public interest issues.

Ratio Decidendi

The Tribunal found that the merger between Dow Chemical Company and Union Carbide Corporation does not raise competition concerns in South Africa, as the relevant products are fully imported and the merger has already been approved in other jurisdictions where the products are manufactured. The overlap in product markets is academic, given the international nature of the transaction and the limited powers of the Tribunal in such circumstances. Furthermore, the Commission's recommendation to approve the merger was accepted, and no significant public interest issues were identified. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between The Dow Chemical Company and Union Carbide Corporation is approved without conditions.