Izimbiwa Associated Companies (Pty) Ltd v Bittersweet Trade and Invest 55 proprietary Limited (LM156Feb20) [2020] ZACT 18 (5 May 2020)

Izimbiwa Associated Companies (Pty) Ltd v Bittersweet Trade and Invest 55 proprietary Limited (LM156Feb20) [2020] ZACT 18 (5 May 2020)

The Tribunal found that the activities of the merging parties overlap in the production and supply of thermal coal. The Commission assessed the horizontal overlap in three markets: supply of thermal coal to Eskom under short-term contracts, supply to other domestic customers, and the export market. In all markets, the merged entity's post-merger market share would remain low, and significant competitors would continue to operate. No customers or competitors raised concerns, and the transaction would not negatively affect employment or other public interest factors. Therefore, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant...

Citation
[2020] ZACT 18
Parties
Applicant: Izimbiwa Associated Companies (Pty) Ltd; Respondent: Bittersweet Trade and Invest 55 Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 May 2020
Case Number
LM156Feb20
Procedural Posture
Merger Application / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Yasmin Carrim, Fiona Tregenna, Andiswa Ndoni
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Coal Industry Merger
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Coal Industry Merger

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Parties

Izimbiwa Associated Companies (Pty) Ltd

Applicant

Bittersweet Trade and Invest 55 Proprietary Limited

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Izimbiwa Associated Companies (Pty) Ltd and Bittersweet Trade and Invest 55 Proprietary Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the activities of the merging parties overlap in the production and supply of thermal coal. The Commission assessed the horizontal overlap in three markets: supply of thermal coal to Eskom under short-term contracts, supply to other domestic customers, and the export market. In all markets, the merged entity's post-merger market share would remain low, and significant competitors would continue to operate. No customers or competitors raised concerns, and the transaction would not negatively affect employment or other public interest factors. Therefore, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Izimbiwa Associated Companies (Pty) Ltd and Bittersweet Trade and Invest 55 Proprietary Limited is approved without conditions.