Evraz Group SA and Highveld Steel and Vanadium Corporation Ltd (04/LM/Jan07) [2007] ZACT 45; [2007] 2 CPLR 303 (CT) (6 July 2007)

Evraz Group SA and Highveld Steel and Vanadium Corporation Ltd (04/LM/Jan07) [2007] ZACT 45; [2007] 2 CPLR 303 (CT) (6 July 2007)

The Tribunal found that the merger, as structured and subject to the divestiture conditions imposed by the European Commission, would not result in a substantial lessening or prevention of competition in the South African markets for vanadium feedstock, vanadium oxides, and finished vanadium products. The overlap between Evraz and Highveld in these products is eliminated by the required sale of Highveld's vanadium oxide and finished vanadium products businesses. The Tribunal accepted the parties' and Commission's proposal to make compliance with the EC order a condition of approval, including the requirement to file all relevant EC notices and applications with the South African...

Citation
[2007] ZACT 45
Parties
Applicant: Evraz Group SA; Respondent: Highveld Steel and Vanadium Corporation Ltd; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 July 2007
Case Number
04/LM/Jan07
Procedural Posture
Merger Application / Reasons for Decision After Conditional Approval
Outcome
Merger approved subject to divestiture conditions as imposed by the European Commission.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Clearance, Divestiture Conditions, Vertical Integration, Substantial Lessening of Competition
Competition Law Commercial and Corporate Merger Clearance Divestiture Conditions Vertical Integration Substantial Lessening of Competition

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Parties

Evraz Group SA

Applicant

Highveld Steel and Vanadium Corporation Ltd

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Application / Reasons for Decision After Conditional Approval

Legal Issues

  1. 1 Does the proposed merger between Evraz Group SA and Highveld Steel and Vanadium Corporation Ltd result in a substantial lessening or prevention of competition in the relevant South African markets?
  2. 2 Are the divestiture conditions imposed by the European Commission sufficient to remedy any competition concerns in South Africa?
  3. 3 Is there any public interest issue arising from the merger?

Ratio Decidendi

The Tribunal found that the merger, as structured and subject to the divestiture conditions imposed by the European Commission, would not result in a substantial lessening or prevention of competition in the South African markets for vanadium feedstock, vanadium oxides, and finished vanadium products. The overlap between Evraz and Highveld in these products is eliminated by the required sale of Highveld's vanadium oxide and finished vanadium products businesses. The Tribunal accepted the parties' and Commission's proposal to make compliance with the EC order a condition of approval, including the requirement to file all relevant EC notices and applications with the South African...

Court Disposition

Merger approved subject to divestiture conditions as imposed by the European Commission.

Orders

  • The merger between Evraz Group SA and Highveld Steel and Vanadium Corporation Ltd is approved subject to the divestiture of interests in Mapochs mine and Vanchem plants as confirmed by the European Commission.
  • The merging parties must file any notice, report, or application required by their commitments to the European Commission with the South African Competition Commission at the same time as they file with the European Commission.