Lexshell 140 General Trading (Pty) Ltd v Incwala Resources (Pty) Ltd (27/LM/May10) [2010] ZACT 47 (16 July 2010)

Lexshell 140 General Trading (Pty) Ltd v Incwala Resources (Pty) Ltd (27/LM/May10) [2010] ZACT 47 (16 July 2010)

The Tribunal found that the proposed transaction is a restructuring of empowerment shareholding and does not confer operational control over Lonmin's assets to Shanduka. The merged entity's market shares in all relevant horizontal markets remain below 15%, with minimal accretion. There are sufficient competitors in the affected markets, and no significant vertical foreclosure concerns arise as chromite fines supply is committed to third parties and alternative sources are available. The transaction does not adversely affect employment or raise other public interest concerns. Accordingly, the merger is unlikely to substantially prevent or lessen competition in any relevant market and is...

Citation
[2010] ZACT 47
Parties
Applicant: Lexshell 140 General Trading (Pty) Ltd; Respondent: Incwala Resources (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 July 2010
Case Number
27/LM/May10
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Large Merger, Horizontal Assessment, Vertical Assessment, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Large Merger Horizontal Assessment Vertical Assessment Public Interest Market Share Analysis

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 3 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Lexshell 140 General Trading (Pty) Ltd

Applicant

Incwala Resources (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any significant vertical foreclosure concerns.
  3. 3 Whether any public interest issues arise from the proposed merger.

Ratio Decidendi

The Tribunal found that the proposed transaction is a restructuring of empowerment shareholding and does not confer operational control over Lonmin's assets to Shanduka. The merged entity's market shares in all relevant horizontal markets remain below 15%, with minimal accretion. There are sufficient competitors in the affected markets, and no significant vertical foreclosure concerns arise as chromite fines supply is committed to third parties and alternative sources are available. The transaction does not adversely affect employment or raise other public interest concerns. Accordingly, the merger is unlikely to substantially prevent or lessen competition in any relevant market and is...

Court Disposition

Merger approved without conditions.

Orders

  • The acquisition by Lexshell 140 General Trading (Pty) Ltd of Incwala Resources (Pty) Ltd is approved.
  • No conditions are attached to the approval.