Rosewild Trade and Invest (Pty) Ltd and Chlor-Alkali Holdings (Pty) Ltd (LM035May16) [2016] ZACT 123 (15 September 2016)

Rosewild Trade and Invest (Pty) Ltd and Chlor-Alkali Holdings (Pty) Ltd (LM035May16) [2016] ZACT 123 (15 September 2016)

The Tribunal found that in all relevant markets, the merged entity's post-merger market shares were either low or de minimus, and that sufficient competition would remain from other market participants. In the market for dense soda ash, although the merged entity would have a significant market share, the acquiring group previously had a negligible presence, and customers exercised countervailing power through tender processes and the ability to import. The Tribunal accepted the Commission's findings that there was no evidence of input or customer foreclosure, and that the merged entity would not have the incentive to cease production or supply of soda ash. No negative public interest...

Citation
[2016] ZACT 123
Parties
Applicant: Rosewild Trade and Invest (Pty) Ltd; Respondent: Chlor-Alkali Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 September 2016
Case Number
LM035May16
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
AW Wessels, Medi Mokuena, Andiswa Ndoni
Legal Topics
Horizontal Merger, Vertical Merger, Market Share Analysis, Input Foreclosure, Public Interest, Unconditional Approval
Competition Law Horizontal Merger Vertical Merger Market Share Analysis Input Foreclosure Public Interest Unconditional Approval

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Parties

Rosewild Trade and Invest (Pty) Ltd

Applicant

Chlor-Alkali Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed transaction will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether the merged entity will have the incentive or ability to engage in input or customer foreclosure.

Ratio Decidendi

The Tribunal found that in all relevant markets, the merged entity's post-merger market shares were either low or de minimus, and that sufficient competition would remain from other market participants. In the market for dense soda ash, although the merged entity would have a significant market share, the acquiring group previously had a negligible presence, and customers exercised countervailing power through tender processes and the ability to import. The Tribunal accepted the Commission's findings that there was no evidence of input or customer foreclosure, and that the merged entity would not have the incentive to cease production or supply of soda ash. No negative public interest...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The proposed transaction between Rosewild Trade and Invest (Pty) Ltd and Chlor-Alkali Holdings (Pty) Ltd is approved without conditions.