Sasol Chemical Industries Limited and Sasol Dia Acrylates (Pty) Ltd (125 /LM/Nov07) [2008] ZACT 11; [2008] 1 CPLR 177 (CT) (29 January 2008)

Sasol Chemical Industries Limited and Sasol Dia Acrylates (Pty) Ltd (125 /LM/Nov07) [2008] ZACT 11; [2008] 1 CPLR 177 (CT) (29 January 2008)

The Tribunal found that the transaction, which changes the control of Sasol Dia Acrylates (Pty) Ltd from joint to sole control by Sasol Chemical Industries Limited, does not affect the market share of the target firm in the global acrylates market. The parties are already vertically integrated, and the merger does not introduce new horizontal or vertical competition concerns. The market share of Sasol Dia Acrylates (Pty) Ltd is approximately 2%, which is low compared to other global competitors. No significant public interest issues arise from the transaction. Accordingly, the Tribunal approved the merger without conditions.

Citation
[2008] ZACT 11
Parties
Applicant: Sasol Chemical Industries Limited; Respondent: Sasol Dia Acrylates (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 January 2008
Case Number
125 /LM/Nov07
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
Y Carrim, D Lewis, N Manoim
Legal Topics
Merger Control, Vertical Integration, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Vertical Integration Market Share Analysis

Case Brief

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Parties

Sasol Chemical Industries Limited

Applicant

Sasol Dia Acrylates (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the acquisition of sole control by Sasol Chemical Industries Limited over Sasol Dia Acrylates (Pty) Ltd raises competition concerns.
  2. 2 Whether the transaction gives rise to any significant public interest issues.
  3. 3 Whether the merger results in horizontal or vertical competition concerns.

Ratio Decidendi

The Tribunal found that the transaction, which changes the control of Sasol Dia Acrylates (Pty) Ltd from joint to sole control by Sasol Chemical Industries Limited, does not affect the market share of the target firm in the global acrylates market. The parties are already vertically integrated, and the merger does not introduce new horizontal or vertical competition concerns. The market share of Sasol Dia Acrylates (Pty) Ltd is approximately 2%, which is low compared to other global competitors. No significant public interest issues arise from the transaction. Accordingly, the Tribunal approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Sasol Chemical Industries Limited and Sasol Dia Acrylates (Pty) Ltd is approved without conditions.