Sasol Holdings USA (Pty) Ltd v Merichem Company (98/LM/Oct12) [2013] ZACT 8 (13 February 2013)

Sasol Holdings USA (Pty) Ltd v Merichem Company (98/LM/Oct12) [2013] ZACT 8 (13 February 2013)

The Tribunal found that the proposed transaction does not result in any horizontal overlap between the activities of the merging parties. The only relationship is vertical, as Sasol supplies Merisol with feedstock products used in the manufacture of phenolic products. Sasol is the sole supplier of these feedstocks, and Merisol is the only manufacturer of certain phenolic products in South Africa. The Commission found no evidence of vertical foreclosure or input/customer concerns, as there are no competitors in the relevant upstream or downstream markets. The move from joint to sole control does not affect pre-merger pricing or competitive dynamics. No customers raised concerns, and there...

Citation
[2013] ZACT 8
Parties
Applicant: Sasol Holdings USA (Pty) Ltd; Respondent: Merichem Company
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2013
Case Number
98/LM/Oct12
Procedural Posture
Merger Application / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Taki Madima, Medi Mokuena
Legal Topics
Merger Control, Vertical Relationships, Market Definition
Competition Law Commercial and Corporate Merger Control Vertical Relationships Market Definition

Case Brief

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Parties

Sasol Holdings USA (Pty) Ltd

Applicant

Merichem Company

Respondent

Procedural Posture

Merger Application / Merger Approval

Legal Issues

  1. 1 Does the proposed merger result in a substantial lessening or prevention of competition in any relevant market?
  2. 2 Are there any public interest concerns arising from the transaction?
  3. 3 Does the transaction present any vertical foreclosure risks in the supply of feedstock or phenolic products?

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal overlap between the activities of the merging parties. The only relationship is vertical, as Sasol supplies Merisol with feedstock products used in the manufacture of phenolic products. Sasol is the sole supplier of these feedstocks, and Merisol is the only manufacturer of certain phenolic products in South Africa. The Commission found no evidence of vertical foreclosure or input/customer concerns, as there are no competitors in the relevant upstream or downstream markets. The move from joint to sole control does not affect pre-merger pricing or competitive dynamics. No customers raised concerns, and there...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Sasol Holdings USA (Pty) Ltd and Merichem Company is approved without conditions.