Samancor Chrome Ltd v NST Ferrochrome (Pty) Ltd (85/LM/Sep12) [2012] ZACT 106; [2013] 1 CPLR 278 (CT) (21 December 2012)

Samancor Chrome Ltd v NST Ferrochrome (Pty) Ltd (85/LM/Sep12) [2012] ZACT 106; [2013] 1 CPLR 278 (CT) (21 December 2012)

The Tribunal found that the proposed acquisition would not substantially prevent or lessen competition in any relevant market. The horizontal overlap in ferrochrome production resulted in a negligible increase in market share, and sufficient competitors remained active. Vertical integration did not raise concerns of input or customer foreclosure, as Samancor and its competitors are self-sufficient and continue to supply third parties. The transaction did not raise any significant public interest concerns, including employment. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2012] ZACT 106
Parties
Applicant: Samancor Chrome Ltd; Respondent: NST Ferrochrome (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 December 2012
Case Number
85/LM/Sep12
Procedural Posture
Merger Control / Tribunal Approval of Merger
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Horizontal Overlap, Vertical Integration, Input Foreclosure, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Integration Input Foreclosure Public Interest Market Share Analysis

Case Brief

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Parties

Samancor Chrome Ltd

Applicant

NST Ferrochrome (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval of Merger

Legal Issues

  1. 1 Whether the proposed acquisition of NST Ferrochrome (Pty) Ltd by Samancor Chrome Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.
  3. 3 Whether the merger will result in input or customer foreclosure in the relevant upstream and downstream markets.

Ratio Decidendi

The Tribunal found that the proposed acquisition would not substantially prevent or lessen competition in any relevant market. The horizontal overlap in ferrochrome production resulted in a negligible increase in market share, and sufficient competitors remained active. Vertical integration did not raise concerns of input or customer foreclosure, as Samancor and its competitors are self-sufficient and continue to supply third parties. The transaction did not raise any significant public interest concerns, including employment. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Samancor Chrome Ltd of NST Ferrochrome (Pty) Ltd is approved without conditions.