Precrete Holdings (Pty) Ltd v Platchro Holdings (Pty) Ltd (LM199Jan17) [2017] ZACT 39 (19 April 2017)

Precrete Holdings (Pty) Ltd v Platchro Holdings (Pty) Ltd (LM199Jan17) [2017] ZACT 39 (19 April 2017)

The Tribunal found that although there is a horizontal overlap in the provision of secondary support solutions in the platinum mining sector, Platchro's contribution to this market is minimal, accounting for less than 10% of its revenue and resulting in a market share accretion of less than 2% for the merged entity. The market is characterized by strong competition from several large firms and operates primarily as a tender market, which ensures competitive parity among participants. No adverse public interest effects, including employment losses, were identified. Accordingly, the Tribunal concluded that the merger would not substantially prevent or lessen competition nor raise public...

Citation
[2017] ZACT 39
Parties
Applicant: Precrete Holdings (Pty) Ltd; Respondent: Platchro Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 April 2017
Case Number
LM199Jan17
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved unconditionally.
Judges
Yasmin Carrim, Andiswa Ndoni, Medi Mokuena
Legal Topics
Horizontal Merger, Market Share Accretion, Public Interest, Employment Effects, Tender Market, Competition Constraints
Competition Law Horizontal Merger Market Share Accretion Public Interest Employment Effects Tender Market Competition Constraints

Case Brief

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Parties

Precrete Holdings (Pty) Ltd

Applicant

Platchro Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Precrete Holdings and Platchro Holdings is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the merger raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap in the provision of secondary support solutions in the platinum mining sector, Platchro's contribution to this market is minimal, accounting for less than 10% of its revenue and resulting in a market share accretion of less than 2% for the merged entity. The market is characterized by strong competition from several large firms and operates primarily as a tender market, which ensures competitive parity among participants. No adverse public interest effects, including employment losses, were identified. Accordingly, the Tribunal concluded that the merger would not substantially prevent or lessen competition nor raise public...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Precrete Holdings (Pty) Ltd and Platchro Holdings (Pty) Ltd is approved without conditions.