Impala Platinum Holdings Limited and African Platinum Plc (26/LM/Mar07) [2007] ZACT 29; [2007] 1 CPLR 173 (CT) (26 April 2007)

Impala Platinum Holdings Limited and African Platinum Plc (26/LM/Mar07) [2007] ZACT 29; [2007] 1 CPLR 173 (CT) (26 April 2007)

The Tribunal found that the transfer of de jure control to Impala Platinum Holdings Limited did not materially alter the competition assessment previously conducted when de facto control was acquired. Market share accretions in the relevant platinum group metals markets remained low, and changes in concentration levels were not significant. While concerns about vertical integration and control over refining were raised, evidence indicated that affected producers could seek alternatives and that refining costs constituted a small portion of total operating costs. Although new entrants in the refining sector were noted, their impact was considered speculative at this stage. The Tribunal...

Citation
[2007] ZACT 29
Parties
Applicant: Impala Platinum Holdings Limited; Respondent: African Platinum Plc
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 April 2007
Case Number
26/LM/Mar07
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger unconditionally approved.
Judges
N Manoim, M Moerane, L Reyburn
Legal Topics
Merger Control, Market Concentration, Barriers to Entry, Vertical Integration
Competition Law Commercial and Corporate Merger Control Market Concentration Barriers to Entry Vertical Integration

Case Brief

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Parties

Impala Platinum Holdings Limited

Applicant

African Platinum Plc

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Impala Platinum Holdings Limited and African Platinum Plc is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether the transfer of de jure control to Impala Platinum Holdings Limited alters the competition assessment previously conducted.
  3. 3 Whether barriers to entry in the platinum group metals (PGM) refining sector are sufficiently low to mitigate competition concerns.

Ratio Decidendi

The Tribunal found that the transfer of de jure control to Impala Platinum Holdings Limited did not materially alter the competition assessment previously conducted when de facto control was acquired. Market share accretions in the relevant platinum group metals markets remained low, and changes in concentration levels were not significant. While concerns about vertical integration and control over refining were raised, evidence indicated that affected producers could seek alternatives and that refining costs constituted a small portion of total operating costs. Although new entrants in the refining sector were noted, their impact was considered speculative at this stage. The Tribunal...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Impala Platinum Holdings Limited and African Platinum Plc is approved without conditions.