Gold Fields Limited and Barrick Gold South Africa (Pty) Ltd / Western Areas Limited (83/LM/Oct06) [2006] ZACT 94; [2007] 1 CPLR 157 (CT) (6 December 2006)

Gold Fields Limited and Barrick Gold South Africa (Pty) Ltd / Western Areas Limited (83/LM/Oct06) [2006] ZACT 94; [2007] 1 CPLR 157 (CT) (6 December 2006)

The Tribunal found that the relevant market is the international market for the production and supply of gold. Gold Fields' acquisition of control over South Deep, through the purchase of Barrick South Africa and Western Areas Limited, would increase its global market share by only 0.56%, from 5.18% to 5.74%. This increment is minor and does not raise competition concerns, especially given the international nature of the gold market and the presence of numerous global competitors. Previous Tribunal decisions have established that such low market shares do not result in anti-competitive effects. There were no public interest issues identified. Accordingly, the mergers were approved...

Citation
[2006] ZACT 94
Parties
Applicant: Gold Fields Limited; Respondent: Barrick Gold South Africa (Pty) Ltd; Respondent: Western Areas Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 December 2006
Case Number
83/LM/Oct06
Procedural Posture
Merger Control / Merger Clearance and Reasons for Decision
Outcome
The mergers were approved unconditionally as they do not lead to a substantial prevention or lessening of competition.
Judges
Y Carrim, MTK Moerane, N Manoim
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Share Analysis

Case Brief

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Parties

Gold Fields Limited

Applicant

Barrick Gold South Africa (Pty) Ltd

Respondent

Western Areas Limited

Respondent

Procedural Posture

Merger Control / Merger Clearance and Reasons for Decision

Legal Issues

  1. 1 Whether the proposed mergers would result in a substantial prevention or lessening of competition in the market for the production and supply of gold.
  2. 2 Whether there are any public interest concerns arising from the transactions.

Ratio Decidendi

The Tribunal found that the relevant market is the international market for the production and supply of gold. Gold Fields' acquisition of control over South Deep, through the purchase of Barrick South Africa and Western Areas Limited, would increase its global market share by only 0.56%, from 5.18% to 5.74%. This increment is minor and does not raise competition concerns, especially given the international nature of the gold market and the presence of numerous global competitors. Previous Tribunal decisions have established that such low market shares do not result in anti-competitive effects. There were no public interest issues identified. Accordingly, the mergers were approved...

Court Disposition

The mergers were approved unconditionally as they do not lead to a substantial prevention or lessening of competition.

Orders

  • The mergers between Gold Fields Limited and Barrick Gold South Africa (Pty) Ltd, and Gold Fields Limited and Western Areas Limited, are approved without conditions.