Royal Bafokeng Capital (Pty) Ltd and Yomhlaba Resources Limited (29/LM/Mar07) [2007] ZACT 40 (7 June 2007)

Royal Bafokeng Capital (Pty) Ltd and Yomhlaba Resources Limited (29/LM/Mar07) [2007] ZACT 40 (7 June 2007)

The Tribunal found that there is no overlap in the activities of the merging parties, and the transaction is therefore unlikely to substantially prevent or lessen competition in any market. The merger advances Broad-Based Black Economic Empowerment objectives and enables the target firm to achieve favourable BEE status and resume trading on the JSE Securities Exchange. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2007] ZACT 40
Parties
Applicant: Royal Bafokeng Capital (Pty) Ltd; Respondent: Yomhlaba Resources Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 June 2007
Case Number
29/LM/Mar07
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, M Holden
Legal Topics
Merger Control, Public Interest, Bee Compliance, Coal Mining Sector
Competition Law Commercial and Corporate Merger Control Public Interest Bee Compliance Coal Mining Sector

Case Brief

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Parties

Royal Bafokeng Capital (Pty) Ltd

Applicant

Yomhlaba Resources Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Royal Bafokeng Capital (Pty) Ltd and Yomhlaba Resources Limited is likely to substantially prevent or lessen competition in any market.
  2. 2 Whether there are any public interest concerns arising from the transaction.
  3. 3 Whether the transaction complies with Broad-Based Black Economic Empowerment requirements.

Ratio Decidendi

The Tribunal found that there is no overlap in the activities of the merging parties, and the transaction is therefore unlikely to substantially prevent or lessen competition in any market. The merger advances Broad-Based Black Economic Empowerment objectives and enables the target firm to achieve favourable BEE status and resume trading on the JSE Securities Exchange. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Royal Bafokeng Capital (Pty) Ltd and Yomhlaba Resources Limited is approved without conditions.