Hebei Zhongbo Platinum Co. Limited v Eastern Platinum Limited (LM005Apr15) [2015] ZACT 110; [2015] 2 CPLR 634 (CT) (16 October 2015)

Hebei Zhongbo Platinum Co. Limited v Eastern Platinum Limited (LM005Apr15) [2015] ZACT 110; [2015] 2 CPLR 634 (CT) (16 October 2015)

The Tribunal found that the proposed merger between Hebei Zhongbo Platinum Co. Limited and Eastern Platinum Limited would not substantially prevent or lessen competition in any relevant market, as Hebei had no prior activity in South Africa and the target firms' market share in chrome ore was less than 2%. The majority of chrome ore produced by the target firms was already exported to China pre-merger, and major South African ferrochrome producers are vertically integrated with their own chrome reserves. Public interest concerns raised by the Community Trust, including employment, local beneficiation, and development delays, were determined not to be merger-specific but rather...

Citation
[2015] ZACT 110
Parties
Applicant: Hebei Zhongbo Platinum Co. Limited; Respondent: Eastern Platinum Limited; Respondent: Competition Commission; Respondent: Ba Bina Ba Noko Ba Mampuru Community Trust
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 October 2015
Case Number
LM005Apr15
Procedural Posture
Large Merger / Approval Hearing and Reasons
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, lmraan Valodia, Medi Mokuena
Legal Topics
Large Merger Review, Public Interest Conditions, Black Economic Empowerment, Mineral and Petroleum Resources Development Act, Local Beneficiation, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Public Interest Conditions Black Economic Empowerment Mineral and Petroleum Resources Development Act Local Beneficiation Employment Effects

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Parties

Hebei Zhongbo Platinum Co. Limited

Applicant

Eastern Platinum Limited

Respondent

Competition Commission

Respondent

Ba Bina Ba Noko Ba Mampuru Community Trust

Respondent

Procedural Posture

Large Merger / Approval Hearing and Reasons

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises significant public interest concerns, including employment, local beneficiation, and BEE participation.
  3. 3 Whether conditions should be imposed on the approval of the merger regarding development timelines, employment, or local beneficiation.

Ratio Decidendi

The Tribunal found that the proposed merger between Hebei Zhongbo Platinum Co. Limited and Eastern Platinum Limited would not substantially prevent or lessen competition in any relevant market, as Hebei had no prior activity in South Africa and the target firms' market share in chrome ore was less than 2%. The majority of chrome ore produced by the target firms was already exported to China pre-merger, and major South African ferrochrome producers are vertically integrated with their own chrome reserves. Public interest concerns raised by the Community Trust, including employment, local beneficiation, and development delays, were determined not to be merger-specific but rather...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.