Framatome Societe Anonyme and Siemens AG (04/LM/Jan01) [2001] ZACT 9 (26 March 2001)

Framatome Societe Anonyme and Siemens AG (04/LM/Jan01) [2001] ZACT 9 (26 March 2001)

The Tribunal found that the relevant product markets affected by the merger are the replacement of steam generators and spent fuel racks, and the provision of maintenance services for nuclear power plants. The geographic market is international, as both parties operate globally and no local presence is required for service provision. The Tribunal determined that, given the number and size of competitors worldwide, including Westinghouse, MHI, BNFL, ABB, and AECL, the merger would not substantially lessen or prevent competition. Eskom, the sole South African customer, is not restricted to sourcing from the merging parties and uses competitive tendering. No public interest concerns were...

Citation
[2001] ZACT 9
Parties
Applicant: Framatome Societe Anonyme; Respondent: Siemens AG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 March 2001
Case Number
04/LM/Jan01
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D. H. Lewis, P. Maponya
Legal Topics
Merger Clearance, Market Definition, International Competition, Public Interest
Competition Law Commercial and Corporate Merger Clearance Market Definition International Competition Public Interest

Case Brief

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Parties

Framatome Societe Anonyme

Applicant

Siemens AG

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the merger between Framatome Societe Anonyme and Siemens AG is likely to substantially lessen or prevent competition in the relevant markets.
  2. 2 Whether any public interest concerns arise from the merger transaction.

Ratio Decidendi

The Tribunal found that the relevant product markets affected by the merger are the replacement of steam generators and spent fuel racks, and the provision of maintenance services for nuclear power plants. The geographic market is international, as both parties operate globally and no local presence is required for service provision. The Tribunal determined that, given the number and size of competitors worldwide, including Westinghouse, MHI, BNFL, ABB, and AECL, the merger would not substantially lessen or prevent competition. Eskom, the sole South African customer, is not restricted to sourcing from the merging parties and uses competitive tendering. No public interest concerns were...

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Framatome Societe Anonyme and Siemens AG is approved without conditions.
  • A Merger Clearance Certificate is issued.