Harmony Gold Mining Company Ltd and Randfontein Estates Limited (16/LM/Feb00) [2000] ZACT 12 (14 April 2000)

Harmony Gold Mining Company Ltd and Randfontein Estates Limited (16/LM/Feb00) [2000] ZACT 12 (14 April 2000)

The Tribunal found that the merger between Harmony Gold Mining Company Ltd and Randfontein Estates Limited does not raise competition concerns because the relevant market for gold bullion bars is international in scope, and the combined market share of the merging parties is only 2.44% of new gold production. The market is characterized by numerous producers and large reserves held by financial institutions, making it impossible for any single producer to influence prices. The Tribunal also found no substantial public interest concerns, as the retrenchments involved skilled professionals likely to find alternative employment, and no objections were received from trade unions. Accordingly,...

Citation
[2000] ZACT 12
Parties
Applicant: Harmony Gold Mining Company Ltd; Respondent: Randfontein Estates Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 April 2000
Case Number
16/LM/Feb00
Procedural Posture
Merger Clearance / Decision on Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, P.E. Maponya
Legal Topics
Large Merger, Market Definition, Public Interest, Retrenchment, International Market Share
Competition Law Commercial and Corporate Large Merger Market Definition Public Interest Retrenchment International Market Share

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Parties

Harmony Gold Mining Company Ltd

Applicant

Randfontein Estates Limited

Respondent

Procedural Posture

Merger Clearance / Decision on Approval

Legal Issues

  1. 1 Does the merger between Harmony Gold Mining Company Ltd and Randfontein Estates Limited substantially lessen competition in the market for gold bullion bars?
  2. 2 Are there any public interest concerns arising from the merger that warrant prohibition?

Ratio Decidendi

The Tribunal found that the merger between Harmony Gold Mining Company Ltd and Randfontein Estates Limited does not raise competition concerns because the relevant market for gold bullion bars is international in scope, and the combined market share of the merging parties is only 2.44% of new gold production. The market is characterized by numerous producers and large reserves held by financial institutions, making it impossible for any single producer to influence prices. The Tribunal also found no substantial public interest concerns, as the retrenchments involved skilled professionals likely to find alternative employment, and no objections were received from trade unions. Accordingly,...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Harmony Gold Mining Company Ltd and Randfontein Estates Limited is approved without conditions.
  • A Merger Clearance Certificate is issued.