Duferco Investment Partners Inc v Highveld Steel (67/LM/Jun08) [2008] ZACT 76 (17 September 2008)

Duferco Investment Partners Inc v Highveld Steel (67/LM/Jun08) [2008] ZACT 76 (17 September 2008)

The Tribunal found that the proposed merger between Duferco Investment Partners Inc. and Highveld Steel is a direct consequence of its previous divestiture order and is intended to comply with both South African and European Commission requirements. There is no horizontal or vertical overlap in the parties' activities in South Africa, and the European Commission has approved Duferco as the acquiring firm. The transaction does not result in control of Mapochs Mine, and there are no public interest concerns. Accordingly, the Tribunal concluded that the merger will not result in a substantial lessening or prevention of competition in the relevant markets and approved the merger without...

Citation
[2008] ZACT 76
Parties
Applicant: Duferco Investment Partners Inc.; Respondent: Highveld Steel & Vanadium Corporation Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 September 2008
Case Number
67/LM/Jun08
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, Y Carrim, U Bhoola
Legal Topics
Merger Control, Divestiture Order, Substantial Lessening of Competition
Competition Law Commercial and Corporate Merger Control Divestiture Order Substantial Lessening of Competition

Case Brief

Summary, issues, holding and outcome

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Parties

Duferco Investment Partners Inc.

Applicant

Highveld Steel & Vanadium Corporation Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Duferco Investment Partners Inc. and Highveld Steel complies with the Tribunal's previous divestiture order.
  2. 2 Whether the transaction will result in a substantial lessening or prevention of competition in the relevant markets.
  3. 3 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the proposed merger between Duferco Investment Partners Inc. and Highveld Steel is a direct consequence of its previous divestiture order and is intended to comply with both South African and European Commission requirements. There is no horizontal or vertical overlap in the parties' activities in South Africa, and the European Commission has approved Duferco as the acquiring firm. The transaction does not result in control of Mapochs Mine, and there are no public interest concerns. Accordingly, the Tribunal concluded that the merger will not result in a substantial lessening or prevention of competition in the relevant markets and approved the merger without...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Duferco Investment Partners Inc. and Highveld Steel is approved without conditions.
  • There are no public interest issues arising from the transaction.