Samancor Manganese (Pty) Ltd and Advalloy (Pty) Ltd (32/LM/Apr06) [2006] ZACT 54 (5 July 2006)

Samancor Manganese (Pty) Ltd and Advalloy (Pty) Ltd (32/LM/Apr06) [2006] ZACT 54 (5 July 2006)

The Tribunal found that the proposed merger between Samancor Manganese and Advalloy is a vertical transaction affecting both upstream and downstream markets for manganese ore and ferromanganese alloys. The Commission's investigation revealed that the merger would not result in input foreclosure, as Samancor Manganese continues to supply a significant portion of its ore to unrelated third parties and existing relationships with downstream producers predate the merger. Furthermore, the merger would not promote coordinated conduct between competitors in the downstream market, as the shareholding structure and business relationships remain unchanged. No public interest concerns were...

Citation
[2006] ZACT 54
Parties
Applicant: Samancor Manganese (Pty) Ltd; Respondent: Advalloy (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 July 2006
Case Number
32/LM/Apr06
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
D. Lewis, Mokuena, N Manoim
Legal Topics
Vertical Merger, Input Foreclosure, Coordinated Conduct, Market Definition, Public Interest
Competition Law Commercial and Corporate Vertical Merger Input Foreclosure Coordinated Conduct Market Definition Public Interest

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 2 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Samancor Manganese (Pty) Ltd

Applicant

Advalloy (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening or prevention of competition in the relevant markets.
  2. 2 Whether the merger is likely to result in input foreclosure in the downstream market for medium and low carbon ferromanganese.
  3. 3 Whether the merger is likely to promote coordinated conduct between competitors in the downstream market.

Ratio Decidendi

The Tribunal found that the proposed merger between Samancor Manganese and Advalloy is a vertical transaction affecting both upstream and downstream markets for manganese ore and ferromanganese alloys. The Commission's investigation revealed that the merger would not result in input foreclosure, as Samancor Manganese continues to supply a significant portion of its ore to unrelated third parties and existing relationships with downstream producers predate the merger. Furthermore, the merger would not promote coordinated conduct between competitors in the downstream market, as the shareholding structure and business relationships remain unchanged. No public interest concerns were...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Samancor Manganese (Pty) Ltd and Advalloy (Pty) Ltd is approved without conditions.