Northam Platinum Holdings Limited v Northam Platinum Limited (LM024May21) [2021] ZACT 31 (12 July 2021)

Northam Platinum Holdings Limited v Northam Platinum Limited (LM024May21) [2021] ZACT 31 (12 July 2021)

The Tribunal found that the proposed merger is an internal restructure within the Northam group, designed to unwind the existing BEE structure and implement a new one, resulting in a net increase in HDP ownership. The Commission's investigation revealed no accretion in market shares in the global markets for platinum, palladium, rhodium, or gold, and the merged entity would remain constrained by other major competitors. The merger would not result in retrenchments or job losses, nor would it affect mining rights or Social Labour Plans. No third party raised concerns. The Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition or negatively impact...

Citation
[2021] ZACT 31
Parties
Applicant: Northam Platinum Holdings Limited; Respondent: Northam Platinum Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 July 2021
Case Number
LM024May21
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger unconditionally approved.
Judges
Mondo Mazwai, Andreas Wessels, Imraan Valodia
Legal Topics
Large Merger Review, Black Economic Empowerment, Public Interest, Market Share Analysis, Mining Rights, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Black Economic Empowerment Public Interest Market Share Analysis Mining Rights Employment Effects

Case Brief

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Parties

Northam Platinum Holdings Limited

Applicant

Northam Platinum Limited

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger would have a negative impact on public interest, including employment and ownership spread.
  3. 3 Whether the transaction would affect mining rights or Social Labour Plans.

Ratio Decidendi

The Tribunal found that the proposed merger is an internal restructure within the Northam group, designed to unwind the existing BEE structure and implement a new one, resulting in a net increase in HDP ownership. The Commission's investigation revealed no accretion in market shares in the global markets for platinum, palladium, rhodium, or gold, and the merged entity would remain constrained by other major competitors. The merger would not result in retrenchments or job losses, nor would it affect mining rights or Social Labour Plans. No third party raised concerns. The Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition or negatively impact...

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Northam Platinum Holdings Limited and Northam Platinum Limited is approved without conditions.