Sibanye Gold Limited v Newshelf 1114 (Proprietary) Limited (017855) [2014] ZACT 87 (3 March 2014)

Sibanye Gold Limited v Newshelf 1114 (Proprietary) Limited (017855) [2014] ZACT 87 (3 March 2014)

The Tribunal found that the merged entity would have a minimal market share in the international production and supply of gold (approximately 1.41%) and negligible share in silver, with significant competition from other market participants. The evidence did not support a finding that the merger would substantially prevent or lessen competition. Regarding public interest, although retrenchments were notified prior to the merger, the Commission could not conclusively link them to the transaction. To safeguard employees, the Tribunal imposed a condition prohibiting merger-related retrenchments for two years post-implementation. The merging parties did not contest this condition. The...

Citation
[2014] ZACT 87
Parties
Applicant: Sibanye Gold Limited; Respondent: Newshelf 1114 (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 March 2014
Case Number
017855
Procedural Posture
Merger Control / Tribunal Approval and Reasons for Decision
Outcome
Merger approved subject to conditions.
Judges
N Manoim, T Madima, I Valodia
Legal Topics
Merger Control, Public Interest Conditions, Market Share Analysis, Retrenchment Protection
Competition Law Commercial and Corporate Merger Control Public Interest Conditions Market Share Analysis Retrenchment Protection

Case Brief

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Parties

Sibanye Gold Limited

Applicant

Newshelf 1114 (Proprietary) Limited

Respondent

Procedural Posture

Merger Control / Tribunal Approval and Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the international market for the production and supply of gold and silver.
  2. 2 Whether the merger would have adverse public interest effects, particularly regarding employee retrenchments.
  3. 3 Whether the conditions imposed by the Commission are appropriate and sufficient to address any public interest concerns.

Ratio Decidendi

The Tribunal found that the merged entity would have a minimal market share in the international production and supply of gold (approximately 1.41%) and negligible share in silver, with significant competition from other market participants. The evidence did not support a finding that the merger would substantially prevent or lessen competition. Regarding public interest, although retrenchments were notified prior to the merger, the Commission could not conclusively link them to the transaction. To safeguard employees, the Tribunal imposed a condition prohibiting merger-related retrenchments for two years post-implementation. The merging parties did not contest this condition. The...

Court Disposition

Merger approved subject to conditions.

Orders

  • The merger between Sibanye Gold Limited and Newshelf 1114 (Proprietary) Limited is approved in terms of section 16(2)(b) of the Competition Act, subject to the conditions in Annexure A.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal rule 35(5)(a).