Rustenburg Platinum Mines Limited v The Mototolo Chrome Recovery Circuit (LM157Aug18) [2018] ZACT 55 (23 October 2018)

Rustenburg Platinum Mines Limited v The Mototolo Chrome Recovery Circuit (LM157Aug18) [2018] ZACT 55 (23 October 2018)

The Tribunal found that the transaction represents a shift from joint to sole control of the Mototolo mine, but does not alter the structure or incentives in the relevant markets for PGMs or chrome ore. Existing supply agreements ensure continuity of relationships, and the market share accretion is negligible. The Commission's investigation confirmed that there will be no negative impact on employment and no other public interest concerns arise. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and does not raise public interest issues. The merger was approved unconditionally.

Citation
[2018] ZACT 55
Parties
Applicant: Rustenburg Platinum Mines Limited; Respondent: The Mototolo Joint Venture; Respondent: Mototolo Chrome Recovery Circuit
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 October 2018
Case Number
LM157Aug18
Procedural Posture
Large Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Halton Cheadle
Legal Topics
Merger Control, Sole Control Acquisition, Public Interest Assessment, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Sole Control Acquisition Public Interest Assessment Market Share Analysis

Case Brief

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Parties

Rustenburg Platinum Mines Limited

Applicant

The Mototolo Joint Venture

Respondent

Mototolo Chrome Recovery Circuit

Respondent

Procedural Posture

Large Merger Application / Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that the transaction represents a shift from joint to sole control of the Mototolo mine, but does not alter the structure or incentives in the relevant markets for PGMs or chrome ore. Existing supply agreements ensure continuity of relationships, and the market share accretion is negligible. The Commission's investigation confirmed that there will be no negative impact on employment and no other public interest concerns arise. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and does not raise public interest issues. The merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.