Sibanye Gold Limited v Witwatersrand Consolidated Gold Resources Ltd (018366) [2014] ZACT 25 (26 February 2014)

Sibanye Gold Limited v Witwatersrand Consolidated Gold Resources Ltd (018366) [2014] ZACT 25 (26 February 2014)

The Tribunal found that the relevant market is the international market for the production and supply of gold and silver. Both merging parties operate in this market, but their combined market share is minimal—less than 2% for gold and 1% for silver. The Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in the relevant market. Furthermore, no public interest concerns were identified. Therefore, the Tribunal approved the merger unconditionally.

Citation
[2014] ZACT 25
Parties
Applicant: Sibanye Gold Limited; Respondent: Witwatersrand Consolidated Gold Resources Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 February 2014
Case Number
018366
Procedural Posture
Merger Control / Approval of Merger
Outcome
The merger is approved unconditionally.
Judges
Anton Roskam, Medi Mokuena, Merle Holden
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Public Interest, International Gold Market
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Definition Public Interest International Gold Market

Case Brief

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Parties

Sibanye Gold Limited

Applicant

Witwatersrand Consolidated Gold Resources Limited

Respondent

Procedural Posture

Merger Control / Approval of Merger

Legal Issues

  1. 1 Whether the proposed acquisition of Witwatersrand Consolidated Gold Resources Limited by Sibanye Gold Limited is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the relevant market is the international market for the production and supply of gold and silver. Both merging parties operate in this market, but their combined market share is minimal—less than 2% for gold and 1% for silver. The Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in the relevant market. Furthermore, no public interest concerns were identified. Therefore, the Tribunal approved the merger unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.