Element Six Abrasives S.A and Barat Carbide Holding Gmbh (66/LM/Jun07) [2007] ZACT 74 (24 October 2007)

Element Six Abrasives S.A and Barat Carbide Holding Gmbh (66/LM/Jun07) [2007] ZACT 74 (24 October 2007)

The Tribunal found that the combined global market share of the merging parties in the broad market for hard material products is low, estimated at about 6%. In the narrowly defined markets, there is no overlap in activities. Vertical concerns such as input and customer foreclosure were dismissed due to the presence of alternative suppliers and customers in all relevant markets. The transaction does not raise public interest concerns. Therefore, the merger is unlikely to substantially lessen or prevent competition in any relevant market and is approved unconditionally.

Citation
[2007] ZACT 74
Parties
Applicant: Element Six Abrasives S.A.; Respondent: Barat Carbide Holding Gmbh
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 October 2007
Case Number
66/LM/Jun07
Procedural Posture
Merger Control / Tribunal Approval and Reasons
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Vertical Analysis, Horizontal Analysis, Market Definition, Public Interest
Competition Law Commercial and Corporate Merger Control Vertical Analysis Horizontal Analysis Market Definition Public Interest

Case Brief

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Parties

Element Six Abrasives S.A.

Applicant

Barat Carbide Holding Gmbh

Respondent

Procedural Posture

Merger Control / Tribunal Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger between Element Six Abrasives S.A. and Barat Carbide Holding Gmbh is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that the combined global market share of the merging parties in the broad market for hard material products is low, estimated at about 6%. In the narrowly defined markets, there is no overlap in activities. Vertical concerns such as input and customer foreclosure were dismissed due to the presence of alternative suppliers and customers in all relevant markets. The transaction does not raise public interest concerns. Therefore, the merger is unlikely to substantially lessen or prevent competition in any relevant market and is approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Element Six Abrasives S.A. and Barat Carbide Holding Gmbh is approved without conditions.