Sasol Chemical Industries Ltd and Sasol Dyno Nobel (Pty) Ltd (62/LM/Jul06) [2006] ZACT 79 (3 October 2006)

Sasol Chemical Industries Ltd and Sasol Dyno Nobel (Pty) Ltd (62/LM/Jul06) [2006] ZACT 79 (3 October 2006)

The Tribunal found that the acquisition by Sasol Chemical Industries Ltd of the remaining 40% shareholding in Sasol Dyno Nobel does not result in any change in market structure or accretion in market share, as there is no overlap in products or services between the merging parties. The transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, there are no public interest concerns associated with the merger. Accordingly, the Tribunal approved the transaction without conditions.

Citation
[2006] ZACT 79
Parties
Applicant: Sasol Chemical Industries Ltd; Respondent: Sasol Dyno Nobel (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 October 2006
Case Number
62/LM/Jul06
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Market Structure, Public Interest, Pre Emptive Rights
Competition Law Commercial and Corporate Merger Control Market Structure Public Interest Pre Emptive Rights

Case Brief

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Parties

Sasol Chemical Industries Ltd

Applicant

Sasol Dyno Nobel (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of the remaining 40% shareholding in Sasol Dyno Nobel by Sasol Chemical Industries Ltd will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the acquisition by Sasol Chemical Industries Ltd of the remaining 40% shareholding in Sasol Dyno Nobel does not result in any change in market structure or accretion in market share, as there is no overlap in products or services between the merging parties. The transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, there are no public interest concerns associated with the merger. Accordingly, the Tribunal approved the transaction without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Sasol Chemical Industries Ltd and Sasol Dyno Nobel (Pty) Ltd is approved without conditions.