Sasol Holding in Germany GMBH and Schumann Sasol International AG (26/LM/Apr02) [2002] ZACT 41 (24 June 2002)

Sasol Holding in Germany GMBH and Schumann Sasol International AG (26/LM/Apr02) [2002] ZACT 41 (24 June 2002)

The Tribunal found that the proposed merger would not have any effect on competition in South Africa, as the relevant product markets of the parties do not overlap. Although there is some vertical integration, this does not raise competition concerns. The transaction serves to align Sasol's control with its existing economic stake in Schumann Sasol International AG. Furthermore, the merger does not raise any public interest concerns, as there will be no effect on employment in South Africa. Accordingly, the merger was approved without conditions.

Citation
[2002] ZACT 41
Parties
Applicant: Sasol Holding in Germany GMBH; Respondent: Schumann Sasol International AG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 June 2002
Case Number
26/LM/Apr02
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
D.H. Lewis, N. Manoim, U. Bhoola
Legal Topics
Large Merger Review, Vertical Integration, Public Interest, Market Definition
Competition Law Large Merger Review Vertical Integration Public Interest Market Definition

Case Brief

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Parties

Sasol Holding in Germany GMBH

Applicant

Schumann Sasol International AG

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.
  3. 3 Whether vertical integration resulting from the merger raises competition concerns.

Ratio Decidendi

The Tribunal found that the proposed merger would not have any effect on competition in South Africa, as the relevant product markets of the parties do not overlap. Although there is some vertical integration, this does not raise competition concerns. The transaction serves to align Sasol's control with its existing economic stake in Schumann Sasol International AG. Furthermore, the merger does not raise any public interest concerns, as there will be no effect on employment in South Africa. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Sasol Holding in Germany GMBH and Schumann Sasol International AG is approved without conditions.
  • A Merger Clearance Certificate is issued.