Kgalagadi Alloys (Pty) Ltd v Kalagadi Manganese (Pty) Ltd (LM169Nov16) [2017] ZACT 8; [2017] 1 CPLR 350 (CT) (8 February 2017)

Kgalagadi Alloys (Pty) Ltd v Kalagadi Manganese (Pty) Ltd (LM169Nov16) [2017] ZACT 8; [2017] 1 CPLR 350 (CT) (8 February 2017)

The Tribunal found that the proposed transaction does not alter the structure of any market in which the merging parties are or will be active, and there is no accretion in market shares. The minimum pricing condition in the transaction agreements is unlikely to result in anti-competitive behaviour, as it is transparent and based on international benchmarks. No negative effects on employment or other public interest concerns arise from the transaction. Therefore, the merger is approved unconditionally.

Citation
[2017] ZACT 8
Parties
Applicant: Kgalagadi Alloys (Pty) Ltd; Respondent: Kalagadi Manganese (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 February 2017
Case Number
LM169Nov16
Procedural Posture
Merger Control / Approval Hearing
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, AW Wessels
Legal Topics
Merger Control, Anti Competitive Agreements, Public Interest, Market Structure
Competition Law Merger Control Anti Competitive Agreements Public Interest Market Structure

Case Brief

Summary, issues, holding and outcome

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Parties

Kgalagadi Alloys (Pty) Ltd

Applicant

Kalagadi Manganese (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval Hearing

Legal Issues

  1. 1 Whether the proposed acquisition of a 50% share in Kalagadi Manganese (Pty) Ltd by Kgalagadi Alloys (Pty) Ltd will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the minimum pricing condition in the transaction agreements may result in anti-competitive behaviour under the Competition Act.
  3. 3 Whether any public interest concerns, including employment effects, arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the proposed transaction does not alter the structure of any market in which the merging parties are or will be active, and there is no accretion in market shares. The minimum pricing condition in the transaction agreements is unlikely to result in anti-competitive behaviour, as it is transparent and based on international benchmarks. No negative effects on employment or other public interest concerns arise from the transaction. Therefore, the merger is approved unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Kgalagadi Alloys (Pty) Ltd and Kalagadi Manganese (Pty) Ltd is approved without conditions.