Exxaro Resources Ltd v Cennergi (Pty) Ltd (LM125Oct19) [2019] ZACT 87 (4 December 2019)

Exxaro Resources Ltd v Cennergi (Pty) Ltd (LM125Oct19) [2019] ZACT 87 (4 December 2019)

The Tribunal found that the proposed transaction does not give rise to any horizontal or vertical overlap in the relevant markets, as Exxaro does not have interests in other companies operating in the renewable energy sector. The Commission's investigation confirmed the absence of competition concerns. Furthermore, the merging parties and employee representatives confirmed that the transaction would not result in retrenchments or other public interest issues. Accordingly, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition and raises no public interest concerns. The merger was approved unconditionally.

Citation
[2019] ZACT 87
Parties
Applicant: Exxaro Resources Ltd; Respondent: Cennergi (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 December 2019
Case Number
LM125Oct19
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Yasmin Carrim, Fiona Tregenna, Thando Vilakazi
Legal Topics
Merger Control, Public Interest, Horizontal and Vertical Overlap, Renewable Energy Sector
Competition Law Commercial and Corporate Merger Control Public Interest Horizontal and Vertical Overlap Renewable Energy Sector

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Parties

Exxaro Resources Ltd

Applicant

Cennergi (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition of Cennergi by Exxaro raises competition concerns in any relevant market.
  2. 2 Whether the transaction gives rise to any public interest concerns, including potential retrenchments.

Ratio Decidendi

The Tribunal found that the proposed transaction does not give rise to any horizontal or vertical overlap in the relevant markets, as Exxaro does not have interests in other companies operating in the renewable energy sector. The Commission's investigation confirmed the absence of competition concerns. Furthermore, the merging parties and employee representatives confirmed that the transaction would not result in retrenchments or other public interest issues. Accordingly, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition and raises no public interest concerns. The merger was approved unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between Exxaro Resources Ltd and Cennergi (Pty) Ltd is approved without conditions.