General Electric Company v Thermal Power, Renewable Power And Grid Business of Alstom (LM176Jan15) [2015] ZACT 57 (18 June 2015)

General Electric Company v Thermal Power, Renewable Power And Grid Business of Alstom (LM176Jan15) [2015] ZACT 57 (18 June 2015)

The Tribunal found that there were no significant horizontal overlaps between the activities of GE and Alstom Energy in the relevant South African markets for steam turbines, gas turbines, and substation automation systems. Where overlaps existed, market shares were low and strong competitors remained, notably Siemens and Ansaldo. The merging parties provided satisfactory commitments regarding public interest concerns, including localisation and honouring existing contracts. Eskom's concerns were addressed, and no adverse effect on employment was anticipated. The Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition or raise significant public...

Citation
[2015] ZACT 57
Parties
Applicant: General Electric Company; Respondent: Thermal Power, Renewable Power and Grid Business of Alstom
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 June 2015
Case Number
LM176Jan15
Procedural Posture
Merger Review / Reasons for Unconditional Approval of Large Merger
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Fiona Tregenna, Medi Mokuena
Legal Topics
Large Merger Review, Horizontal Overlap Analysis, Public Interest Commitments, Preferential Procurement Policy Framework Act, Market Definition, Localisation Requirements
Competition Law Large Merger Review Horizontal Overlap Analysis Public Interest Commitments Preferential Procurement Policy Framework Act Market Definition Localisation Requirements

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Parties

General Electric Company

Applicant

Thermal Power, Renewable Power and Grid Business of Alstom

Respondent

Procedural Posture

Merger Review / Reasons for Unconditional Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed merger between GE and Alstom Energy is likely to substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the merger raises significant public interest concerns, particularly regarding local sourcing and employment.

Ratio Decidendi

The Tribunal found that there were no significant horizontal overlaps between the activities of GE and Alstom Energy in the relevant South African markets for steam turbines, gas turbines, and substation automation systems. Where overlaps existed, market shares were low and strong competitors remained, notably Siemens and Ansaldo. The merging parties provided satisfactory commitments regarding public interest concerns, including localisation and honouring existing contracts. Eskom's concerns were addressed, and no adverse effect on employment was anticipated. The Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition or raise significant public...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between General Electric Company and the Thermal Power, Renewable Power and Grid Business of Alstom is approved without conditions.