Sappi Papier Holding GMBH v M-Real Corporation (36/LM/Apr09) [2009] ZACT 55; [2009] 2 CPLR 479 (CT) (2 September 2009)

Sappi Papier Holding GMBH v M-Real Corporation (36/LM/Apr09) [2009] ZACT 55; [2009] 2 CPLR 479 (CT) (2 September 2009)

The Tribunal found that the proposed acquisition would not result in a substantial lessening or prevention of competition in the relevant markets for wood-free coated paper and coated mechanical paper. The merging parties' post-merger market shares were not high, and there were numerous credible international competitors. Customers were able to bargain over prices and switch suppliers freely, with no long-term agreements restricting competition. No significant public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2009] ZACT 55
Parties
Applicant: Sappi Papier Holding GMBH; Respondent: M-Real Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 September 2009
Case Number
36/LM/Apr09
Procedural Posture
Merger Control / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, M Holden
Legal Topics
Merger Control, Substantial Lessening of Competition, Public Interest, Market Definition, International Trade
Competition Law Merger Control Substantial Lessening of Competition Public Interest Market Definition International Trade

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 1 Party arguments 2 Amounts and remedies 14
Sign in to unlock

Parties

Sappi Papier Holding GMBH

Applicant

M-Real Corporation

Respondent

Procedural Posture

Merger Control / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed acquisition of M-Real Corporation's South African coated graphic paper export business by Sappi Papier Holding GMBH is likely to substantially lessen or prevent competition in the relevant markets.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed acquisition would not result in a substantial lessening or prevention of competition in the relevant markets for wood-free coated paper and coated mechanical paper. The merging parties' post-merger market shares were not high, and there were numerous credible international competitors. Customers were able to bargain over prices and switch suppliers freely, with no long-term agreements restricting competition. No significant public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Sappi Papier Holding GMBH of M-Real Corporation's South African coated graphic paper export business is approved without conditions.