Raubex (Pty) Ltd and Bauba Resource Ltd (LM115Nov21) [2022] ZACT 17 (2 February 2022)

Raubex (Pty) Ltd and Bauba Resource Ltd (LM115Nov21) [2022] ZACT 17 (2 February 2022)

The Tribunal found that the proposed transaction does not result in any horizontal overlap, as Raubex is not engaged in mining or exploration activities that compete with Bauba. Although there is a vertical overlap due to Raubex providing crushing and opencast mining services to Bauba, the Tribunal accepted the Commission's finding that input foreclosure is unlikely given Raubex's low market share and lack of incentive. Customer foreclosure was also ruled out, as Bauba does not procure such services from other firms. No third party raised concerns. The Tribunal further found that the transaction would not adversely affect employment and that HDP ownership in Bauba would remain unchanged....

Citation
[2022] ZACT 17
Parties
Applicant: Raubex (Pty) Ltd; Respondent: Bauba Resources Ltd; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 February 2022
Case Number
LM115Nov21
Procedural Posture
Large Merger Review / Decision on Approval
Outcome
Merger unconditionally approved.
Judges
Andreas Wessels, Enver Daniels, Liberty Mncube
Legal Topics
Large Merger, Vertical Overlap, Input Foreclosure, Customer Foreclosure, Public Interest, Hdp Ownership
Competition Law Large Merger Vertical Overlap Input Foreclosure Customer Foreclosure Public Interest Hdp Ownership

Case Brief

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Parties

Raubex (Pty) Ltd

Applicant

Bauba Resources Ltd

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment and HDP ownership.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal overlap, as Raubex is not engaged in mining or exploration activities that compete with Bauba. Although there is a vertical overlap due to Raubex providing crushing and opencast mining services to Bauba, the Tribunal accepted the Commission's finding that input foreclosure is unlikely given Raubex's low market share and lack of incentive. Customer foreclosure was also ruled out, as Bauba does not procure such services from other firms. No third party raised concerns. The Tribunal further found that the transaction would not adversely affect employment and that HDP ownership in Bauba would remain unchanged....

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Raubex (Pty) Ltd and Bauba Resources Ltd is unconditionally approved.
  • No conditions are imposed on the approval of the merger.