Mvelaphanda Resources Ltd and Northam Platinum Ltd (98/LM/Sep07) [2008] ZACT 13; - (11 February 2008)

Mvelaphanda Resources Ltd and Northam Platinum Ltd (98/LM/Sep07) [2008] ZACT 13; - (11 February 2008)

The Tribunal found that there is no significant overlap in the activities of the merging parties, as Mvelaphanda Resources Ltd is not involved in platinum mining except for its minority shareholding in Northam Platinum Ltd. The Commission's investigation revealed that the amalgamation of platinum mining rights and joint ventures would only increase the parties' market share by 2%, from 3% to 5%, which is considered insignificant. In the platinum refinery market, the target firm holds less than 10% market share, while other major players such as Anglo Platinum, Impala Platinum, and Lonmin dominate the market. The Tribunal agreed with the Commission that the proposed transaction is unlikely...

Citation
[2008] ZACT 13
Parties
Applicant: Mvelaphanda Resources Ltd; Respondent: Northam Platinum Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 February 2008
Case Number
98/LM/Sep07
Procedural Posture
Merger Clearance / Final Determination
Outcome
Merger approved unconditionally.
Judges
D Lewis, Y Carrim, M Mokuena
Legal Topics
Merger Clearance, Market Share Analysis, Public Interest, Platinum Mining Rights
Competition Law Commercial and Corporate Merger Clearance Market Share Analysis Public Interest Platinum Mining Rights

Case Brief

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Parties

Mvelaphanda Resources Ltd

Applicant

Northam Platinum Ltd

Respondent

Procedural Posture

Merger Clearance / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Mvelaphanda Resources Ltd and Northam Platinum Ltd would substantially prevent or lessen competition in the platinum mining and refinery markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that there is no significant overlap in the activities of the merging parties, as Mvelaphanda Resources Ltd is not involved in platinum mining except for its minority shareholding in Northam Platinum Ltd. The Commission's investigation revealed that the amalgamation of platinum mining rights and joint ventures would only increase the parties' market share by 2%, from 3% to 5%, which is considered insignificant. In the platinum refinery market, the target firm holds less than 10% market share, while other major players such as Anglo Platinum, Impala Platinum, and Lonmin dominate the market. The Tribunal agreed with the Commission that the proposed transaction is unlikely...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Mvelaphanda Resources Ltd and Northam Platinum Ltd is approved without conditions.