Harmony Moab Khotsong Operations (Pty) Ltd v Vaal River Mining Business and Others (LM229Nov17) [2018] ZACT 41 (14 March 2018)

Harmony Moab Khotsong Operations (Pty) Ltd v Vaal River Mining Business and Others (LM229Nov17) [2018] ZACT 41 (14 March 2018)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant markets for gold and silver, as the merged entity's market shares would remain below 1.5% for gold and 1% for silver. The Commission's assessment of ancillary assets confirmed that their inclusion would not affect third parties or alter the competition analysis. The Tribunal also accepted the merging parties' confirmation that no retrenchments or job losses would occur as a result of the transaction. No other public interest concerns were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2018] ZACT 41
Parties
Applicant: Harmony Moab Khotsong Operations (Pty) Ltd; Respondent: Vaal River Mining Businesses, Nuclear Fuels Corporation of South Africa (Pty) Ltd, Margaret Water Company NPC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 March 2018
Case Number
LM229Nov17
Procedural Posture
Merger Approval / Final Determination
Outcome
The merger is approved unconditionally.
Judges
Norman Manoim, Enver Daniels, Medi Mokuena
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Employment Effects
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Employment Effects

Case Brief

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Parties

Harmony Moab Khotsong Operations (Pty) Ltd

Applicant

Vaal River Mining Businesses, Nuclear Fuels Corporation of South Africa (Pty) Ltd, Margaret Water Company NPC

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant markets for gold and silver, as the merged entity's market shares would remain below 1.5% for gold and 1% for silver. The Commission's assessment of ancillary assets confirmed that their inclusion would not affect third parties or alter the competition analysis. The Tribunal also accepted the merging parties' confirmation that no retrenchments or job losses would occur as a result of the transaction. No other public interest concerns were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.