Royal Bofokeng Platinum Ltd v Maseve Investments 11 (Pty) Ltd (LM220Nov17) [2018] ZACT 10 (13 February 2018)

Royal Bofokeng Platinum Ltd v Maseve Investments 11 (Pty) Ltd (LM220Nov17) [2018] ZACT 10 (13 February 2018)

The Tribunal found that the merged entity would have a combined post-merger market share of less than 5% in the relevant platinum and palladium markets, with significant competitors remaining. The vertical relationship between the parties did not raise foreclosure concerns. The retrenchments at Maseve and RBPlat were not merger-specific but resulted from operational and financial challenges. The merger was likely to have positive effects on employment, potentially saving jobs at both mines. The Tribunal approved the merger subject to conditions requiring RBPlat to employ 115 former concentrator plant employees and to take over 20 contracted employees at Maseve on no less favourable terms,...

Citation
[2018] ZACT 10
Parties
Applicant: Royal Bafokeng Platinum Ltd; Respondent: Maseve Investments 11 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2018
Case Number
LM220Nov17
Procedural Posture
Merger Application / Tribunal Approval With Conditions
Outcome
Merger conditionally approved subject to employment-related conditions.
Judges
Norman Manoim, Andreas Wessels, Imraan Valodia
Legal Topics
Merger Control, Public Interest Conditions, Retrenchment Analysis, Section 197 Lra, Market Share Assessment
Competition Law Merger Control Public Interest Conditions Retrenchment Analysis Section 197 Lra Market Share Assessment

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Royal Bafokeng Platinum Ltd

Applicant

Maseve Investments 11 (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Tribunal Approval With Conditions

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger would result in merger-specific retrenchments or negatively affect employment.
  3. 3 Whether the merger raises any other public interest concerns.

Ratio Decidendi

The Tribunal found that the merged entity would have a combined post-merger market share of less than 5% in the relevant platinum and palladium markets, with significant competitors remaining. The vertical relationship between the parties did not raise foreclosure concerns. The retrenchments at Maseve and RBPlat were not merger-specific but resulted from operational and financial challenges. The merger was likely to have positive effects on employment, potentially saving jobs at both mines. The Tribunal approved the merger subject to conditions requiring RBPlat to employ 115 former concentrator plant employees and to take over 20 contracted employees at Maseve on no less favourable terms,...

Court Disposition

Merger conditionally approved subject to employment-related conditions.

Orders

  • RBPlat shall employ 115 employees previously employed at the concentrator plant by 30 July 2018, with preference given to those employees.
  • RBPlat shall take over the 20 named contracted employees currently employed at Maseve in terms of section 197 of the LRA, at no less favourable terms within thirty days of implementation.