Linde Aktiengesellschaft and BOC Group PLC (40/LM/May06) [2006] ZACT 97; [2007] 1 CPLR 187 (CT) (20 December 2006)

Linde Aktiengesellschaft and BOC Group PLC (40/LM/May06) [2006] ZACT 97; [2007] 1 CPLR 187 (CT) (20 December 2006)

The Tribunal found that the overlap between Linde AG and BOC in South Africa is limited to specialty gases, specifically ethylene and calibration gases. Linde AG's activities in these segments are minimal, with sales conducted directly from Germany and no local sales office. Market share analysis revealed that the merged entity would hold approximately 13% of the global calibration gases market, ranking third behind Air Liquide and Air Products. In the ethylene market, both parties have less than 1% market share in South Africa, with other competitors present. The Commission's investigation confirmed that customers can switch suppliers and that there are no significant barriers to entry....

Citation
[2006] ZACT 97
Parties
Applicant: Linde Aktiengesellschaft; Respondent: BOC Group PLC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 December 2006
Case Number
40/LM/May06
Procedural Posture
Merger Application / Reasons for Unconditional Approval of Merger
Outcome
Merger approved unconditionally.
Judges
N Manoim, L Reyburn, M Mokuena
Legal Topics
Horizontal Merger, Market Definition, Specialty Gases, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Horizontal Merger Market Definition Specialty Gases Public Interest Market Share Analysis

Case Brief

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Parties

Linde Aktiengesellschaft

Applicant

BOC Group PLC

Respondent

Procedural Posture

Merger Application / Reasons for Unconditional Approval of Merger

Legal Issues

  1. 1 Whether the proposed merger between Linde Aktiengesellschaft and BOC Group PLC would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the merger would negatively impact public interest, including employment levels in South Africa.
  3. 3 Whether the overlap in specialty gases between the parties is significant in the South African context.

Ratio Decidendi

The Tribunal found that the overlap between Linde AG and BOC in South Africa is limited to specialty gases, specifically ethylene and calibration gases. Linde AG's activities in these segments are minimal, with sales conducted directly from Germany and no local sales office. Market share analysis revealed that the merged entity would hold approximately 13% of the global calibration gases market, ranking third behind Air Liquide and Air Products. In the ethylene market, both parties have less than 1% market share in South Africa, with other competitors present. The Commission's investigation confirmed that customers can switch suppliers and that there are no significant barriers to entry....

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Linde Aktiengesellschaft and BOC Group PLC is approved without conditions.
  • No adverse findings regarding competition or public interest were made.