Nokia Corporation and Siemens Aktiengeselleschaft (85/LM/Oct06) [2007] ZACT 14; [2007] 1 CPLR 217 (CT) (13 February 2007)

Nokia Corporation and Siemens Aktiengeselleschaft (85/LM/Oct06) [2007] ZACT 14; [2007] 1 CPLR 217 (CT) (13 February 2007)

The Tribunal found that the relevant markets for assessment are mobile network equipment and fixed-line network equipment, both internationally and nationally. The merged entity's international market share for mobile network equipment would be 18%, which is only moderately concentrated and does not raise significant competition concerns. In the South African market, the post-merger market share would be 48.2%, but the accretion is only 0.2%, as Siemens already held 48%. For fixed-line equipment, the combined market share is 8.1%, with strong competitors remaining. The transaction does not result in a substantial prevention or lessening of competition, and there are no public interest...

Citation
[2007] ZACT 14
Parties
Applicant: Nokia Corporation; Respondent: Siemens Aktiengeselleschaft
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2007
Case Number
85/LM/Oct06
Procedural Posture
Merger Control / Merger Clearance
Outcome
Merger approved unconditionally; no substantial prevention or lessening of competition or public interest concerns identified.
Judges
DH Lewis, Marumo Moerane, Medi Mokuena
Legal Topics
Merger Control, Market Definition, Market Share Analysis, Public Interest, Telecommunications Equipment, Joint Venture Structures
Competition Law Commercial and Corporate Telecoms and Media Merger Control Market Definition Market Share Analysis Public Interest Telecommunications Equipment +1 more

Case Brief

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Parties

Nokia Corporation

Applicant

Siemens Aktiengeselleschaft

Respondent

Procedural Posture

Merger Control / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Nokia Corporation and Siemens Aktiengeselleschaft will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.
  3. 3 What are the relevant product and geographic markets for the assessment of the merger.

Ratio Decidendi

The Tribunal found that the relevant markets for assessment are mobile network equipment and fixed-line network equipment, both internationally and nationally. The merged entity's international market share for mobile network equipment would be 18%, which is only moderately concentrated and does not raise significant competition concerns. In the South African market, the post-merger market share would be 48.2%, but the accretion is only 0.2%, as Siemens already held 48%. For fixed-line equipment, the combined market share is 8.1%, with strong competitors remaining. The transaction does not result in a substantial prevention or lessening of competition, and there are no public interest...

Court Disposition

Merger approved unconditionally; no substantial prevention or lessening of competition or public interest concerns identified.

Orders

  • The merger between Nokia Corporation and Siemens Aktiengeselleschaft is approved without conditions.
  • No remedies or undertakings are required from the parties.