Sasol Mining (Pty) Ltd and Anglo Operations Ltd (acting through its Anglo Coal division) (26/LM/May03) [2003] ZACT 40 (12 August 2003)

Sasol Mining (Pty) Ltd and Anglo Operations Ltd (acting through its Anglo Coal division) (26/LM/May03) [2003] ZACT 40 (12 August 2003)

The Tribunal found that although both Sasol Mining and Anglo Operations are active in the mining of thermal coal, Sasol Mining does not compete in the market for the supply of thermal coal to third parties, as it consumes all its production internally. The transaction will not affect the supply of coal to Eskom, which is secured by long-term agreements, nor will it negatively impact smaller consumers due to excess production capacity among suppliers. The merger does not raise any public interest concerns. Accordingly, the Tribunal concluded that the merger will not substantially prevent or lessen competition in the relevant market and approved the transaction without conditions.

Citation
[2003] ZACT 40
Parties
Applicant: Sasol Mining (Pty) Ltd; Respondent: Anglo Operations Ltd (acting through its Anglo Coal division)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 August 2003
Case Number
26/LM/May03
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, F Fourie
Legal Topics
Large Merger Review, Market Definition, Public Interest, Effect on Competition
Competition Law Commercial and Corporate Large Merger Review Market Definition Public Interest Effect on Competition

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Parties

Sasol Mining (Pty) Ltd

Applicant

Anglo Operations Ltd (acting through its Anglo Coal division)

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Sasol Mining and Anglo Operations will substantially prevent or lessen competition in the market for thermal coal in South Africa.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that although both Sasol Mining and Anglo Operations are active in the mining of thermal coal, Sasol Mining does not compete in the market for the supply of thermal coal to third parties, as it consumes all its production internally. The transaction will not affect the supply of coal to Eskom, which is secured by long-term agreements, nor will it negatively impact smaller consumers due to excess production capacity among suppliers. The merger does not raise any public interest concerns. Accordingly, the Tribunal concluded that the merger will not substantially prevent or lessen competition in the relevant market and approved the transaction without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Sasol Mining (Pty) Ltd and Anglo Operations Ltd (acting through its Anglo Coal division) is approved without conditions.
  • A Merger Clearance Certificate is issued.