Lexshell 99 General Trading (Pty) Ltd v Springboklaagte Mining (Pty) Ltd (80/LM/Jul08) [2008] ZACT 84; [2008] 2 CPLR 247 (CT) (2 October 2008)

Lexshell 99 General Trading (Pty) Ltd v Springboklaagte Mining (Pty) Ltd (80/LM/Jul08) [2008] ZACT 84; [2008] 2 CPLR 247 (CT) (2 October 2008)

The Tribunal found that the relevant product market is thermal coal and the geographic market is national. The merger would result in a minor increase in market share for the acquiring firm, from 10.1% to 11.7%. The combined entity would continue to face strong competition from several large competitors, including BHP Billiton, Anglo Coal, Sasol Mining, Eyesizwe Coal, and Exxaro Resources. The Tribunal agreed with the Commission's analysis that the transaction is unlikely to raise any competition concerns, as the parties' combined market share remains low and there are no barriers to entry or expansion. Furthermore, no public interest issues were identified. Accordingly, the Tribunal...

Citation
[2008] ZACT 84
Parties
Applicant: Lexshell 99 General Trading (Pty) Ltd; Respondent: Springboklaagte Mining (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 October 2008
Case Number
80/LM/Jul08
Procedural Posture
Merger Clearance / Decision on Unconditional Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, Y Carrim, N Manoim
Legal Topics
Merger Clearance, Market Definition, Public Interest, Market Share Analysis
Competition Law Merger Clearance Market Definition Public Interest Market Share Analysis

Case Brief

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Parties

Lexshell 99 General Trading (Pty) Ltd

Applicant

Springboklaagte Mining (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Decision on Unconditional Approval

Legal Issues

  1. 1 Whether the proposed merger between Lexshell 99 General Trading (Pty) Ltd and Springboklaagte Mining (Pty) Ltd would substantially lessen or prevent competition in the market for thermal coal.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that the relevant product market is thermal coal and the geographic market is national. The merger would result in a minor increase in market share for the acquiring firm, from 10.1% to 11.7%. The combined entity would continue to face strong competition from several large competitors, including BHP Billiton, Anglo Coal, Sasol Mining, Eyesizwe Coal, and Exxaro Resources. The Tribunal agreed with the Commission's analysis that the transaction is unlikely to raise any competition concerns, as the parties' combined market share remains low and there are no barriers to entry or expansion. Furthermore, no public interest issues were identified. Accordingly, the Tribunal...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Lexshell 99 General Trading (Pty) Ltd and Springboklaagte Mining (Pty) Ltd is approved without conditions.