Komatsu America Corp v Joy Global Inc (LM174Nov16) [2017] ZACT 9; [2017] 1 CPLR 354 (CT) (22 February 2017)

Komatsu America Corp v Joy Global Inc (LM174Nov16) [2017] ZACT 9; [2017] 1 CPLR 354 (CT) (22 February 2017)

The Tribunal found that the relevant markets for analysis were the national markets for mining wheel loaders, hydraulic breakers, and ground engaging tools. In the mining wheel loaders market, the parties' products were not substitutable due to size differences, resulting in no overlap. In the hydraulic breakers and ground engaging tools markets, there was a horizontal overlap, but both parties were minor players and would continue to face competition from several other firms. The Commission's investigation found no evidence that the merger would substantially prevent or lessen competition. Furthermore, there were no public interest concerns, including employment effects, as the Komatsu...

Citation
[2017] ZACT 9
Parties
Applicant: Komatsu America Corp.; Respondent: Joy Global Inc.
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 February 2017
Case Number
LM174Nov16
Procedural Posture
Merger Approval / Final Decision
Outcome
The merger is approved unconditionally.
Judges
Andiswa Ndoni, lmraan Valodia, Enver Daniels
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Market Definition
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Market Definition

Case Brief

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Parties

Komatsu America Corp.

Applicant

Joy Global Inc.

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger between Komatsu America Corp. and Joy Global Inc. is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the relevant markets for analysis were the national markets for mining wheel loaders, hydraulic breakers, and ground engaging tools. In the mining wheel loaders market, the parties' products were not substitutable due to size differences, resulting in no overlap. In the hydraulic breakers and ground engaging tools markets, there was a horizontal overlap, but both parties were minor players and would continue to face competition from several other firms. The Commission's investigation found no evidence that the merger would substantially prevent or lessen competition. Furthermore, there were no public interest concerns, including employment effects, as the Komatsu...

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction between Komatsu America Corp. and Joy Global Inc. is approved without conditions.