Franco-Nevada Mining Corporation Ltd and Gold Fields Ltd (77/LM/Jul00) [2000] ZACT 40 (28 September 2000)

Franco-Nevada Mining Corporation Ltd and Gold Fields Ltd (77/LM/Jul00) [2000] ZACT 40 (28 September 2000)

The Tribunal found that although Franco-Nevada and Gold Fields operate in related sectors, the merger would not result in market power for the combined entity. The international gold price is determined by global production and sales, and no single producer can influence prices. The Tribunal also accepted the parties' assurance that no jobs would be lost and that no public interest concerns would arise. Accordingly, the merger was approved without conditions.

Citation
[2000] ZACT 40
Parties
Applicant: Franco-Nevada Mining Corporation Ltd; Respondent: Gold Fields Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 September 2000
Case Number
77/LM/Jul00
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
D.H. Lewis, N.M. Manoim, P.E. Maponya
Legal Topics
Large Merger Review, Market Power Assessment, Public Interest Considerations
Competition Law Commercial and Corporate Large Merger Review Market Power Assessment Public Interest Considerations

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Parties

Franco-Nevada Mining Corporation Ltd

Applicant

Gold Fields Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Does the merger between Franco-Nevada Mining Corporation Ltd and Gold Fields Ltd substantially prevent or lessen competition in any relevant market?
  2. 2 Does the merger raise any public interest concerns under section 16(3) of the Competition Act?

Ratio Decidendi

The Tribunal found that although Franco-Nevada and Gold Fields operate in related sectors, the merger would not result in market power for the combined entity. The international gold price is determined by global production and sales, and no single producer can influence prices. The Tribunal also accepted the parties' assurance that no jobs would be lost and that no public interest concerns would arise. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Franco-Nevada Mining Corporation Ltd and Gold Fields Ltd is approved without conditions.
  • No jobs will be lost as a result of the merger.