Harmony Gold Mining Company Limited and African Rainbow Minerals Gold Limited (25/LM/May03) [2003] ZACT 17 (19 March 2003)

Harmony Gold Mining Company Limited and African Rainbow Minerals Gold Limited (25/LM/May03) [2003] ZACT 17 (19 March 2003)

The Tribunal found that the merger would not significantly increase concentration in the international gold market, as the merged entity's market share would remain relatively small at approximately 5.1%. The gold market is highly fragmented globally, and no single producer can influence the gold price, which is set internationally. The Tribunal also considered public interest factors, noting that no retrenchments were envisaged, all ARMGold employees would be transferred to Harmony, and the transaction would enhance job security and advance black economic empowerment. The Tribunal agreed with the Commission's findings that the merger raised no competition or public interest concerns and...

Citation
[2003] ZACT 17
Parties
Applicant: Harmony Gold Mining Company Limited; Respondent: African Rainbow Minerals Gold Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 March 2003
Case Number
25/LM/May03
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger unconditionally approved.
Judges
D. Lewis, U. Bhoola, L. Reyburn
Legal Topics
Large Merger Review, Market Definition, Public Interest, Black Economic Empowerment
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Black Economic Empowerment

Case Brief

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Parties

Harmony Gold Mining Company Limited

Applicant

African Rainbow Minerals Gold Limited

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Whether the merger between Harmony Gold Mining Company Limited and African Rainbow Minerals Gold Limited is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment and black economic empowerment.

Ratio Decidendi

The Tribunal found that the merger would not significantly increase concentration in the international gold market, as the merged entity's market share would remain relatively small at approximately 5.1%. The gold market is highly fragmented globally, and no single producer can influence the gold price, which is set internationally. The Tribunal also considered public interest factors, noting that no retrenchments were envisaged, all ARMGold employees would be transferred to Harmony, and the transaction would enhance job security and advance black economic empowerment. The Tribunal agreed with the Commission's findings that the merger raised no competition or public interest concerns and...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Harmony Gold Mining Company Limited and African Rainbow Minerals Gold Limited is approved without conditions.