Rio Tinto Plc and Rio Tinto Ltd v Riversdale Mining Ltd (17/LM/Mar11) [2011] ZACT 49 (12 July 2011)

Rio Tinto Plc and Rio Tinto Ltd v Riversdale Mining Ltd (17/LM/Mar11) [2011] ZACT 49 (12 July 2011)

The Tribunal found that there is no horizontal overlap in the activities of the merging parties in South Africa, as Rio Tinto is divesting its only coal interest and Riversdale's South African mining operations are not intended to be retained. Vertical effects were considered unlikely to result in foreclosure, given the existence of alternative suppliers and the lack of incentive for the merged entity to foreclose customers. The Tribunal also noted that no retrenchments or other public interest concerns would arise from the transaction. Accordingly, the Tribunal concluded that the proposed merger is unlikely to substantially prevent or lessen competition in any market and that no public...

Citation
[2011] ZACT 49
Parties
Applicant: Rio Tinto Plc and Rio Tinto Ltd; Respondent: Riversdale Mining Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 July 2011
Case Number
17/LM/Mar11
Procedural Posture
Merger Control / Tribunal Approval of Large Merger
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Assessment, Vertical Assessment, Public Interest, Customer Foreclosure, Input Foreclosure
Competition Law Merger Control Horizontal Assessment Vertical Assessment Public Interest Customer Foreclosure Input Foreclosure

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Parties

Rio Tinto Plc and Rio Tinto Ltd

Applicant

Riversdale Mining Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed acquisition of Riversdale Mining Ltd by Rio Tinto Plc and Rio Tinto Ltd is likely to substantially prevent or lessen competition in any market in South Africa.
  2. 2 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap in the activities of the merging parties in South Africa, as Rio Tinto is divesting its only coal interest and Riversdale's South African mining operations are not intended to be retained. Vertical effects were considered unlikely to result in foreclosure, given the existence of alternative suppliers and the lack of incentive for the merged entity to foreclose customers. The Tribunal also noted that no retrenchments or other public interest concerns would arise from the transaction. Accordingly, the Tribunal concluded that the proposed merger is unlikely to substantially prevent or lessen competition in any market and that no public...

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Rio Tinto Plc and Rio Tinto Ltd of Riversdale Mining Ltd is approved without conditions.