Sibanye Gold Ltd v Newshelf 1114 (Pty) Ltd (017855) [2014] ZACT 46 (3 March 2014)

Sibanye Gold Ltd v Newshelf 1114 (Pty) Ltd (017855) [2014] ZACT 46 (3 March 2014)

The Tribunal found that the merged entity would have a minimal market share in the international gold and silver markets, with no substantial lessening of competition anticipated. The market for gold is highly fragmented, and the merged entity would continue to face significant competition. Regarding public interest, the Tribunal noted concerns about possible retrenchments, but the evidence did not conclusively link these to the merger. To address any risk, the Tribunal imposed a condition prohibiting merger-specific retrenchments for two years post-implementation. The merging parties accepted this condition. The merger was approved subject to these conditions.

Citation
[2014] ZACT 46
Parties
Applicant: Sibanye Gold Limited; Respondent: Newshelf 1114 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 March 2014
Case Number
017855
Procedural Posture
Merger Application / Tribunal Approval With Conditions
Outcome
Merger approved subject to conditions preventing merger-specific retrenchments for two years post-implementation.
Judges
Norman Manoim, Takalani Madima, Imraan Valodia
Legal Topics
Merger Control, Public Interest Conditions, Retrenchment Protection
Competition Law Commercial and Corporate Merger Control Public Interest Conditions Retrenchment Protection

Case Brief

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Parties

Sibanye Gold Limited

Applicant

Newshelf 1114 (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Tribunal Approval With Conditions

Legal Issues

  1. 1 Whether the proposed merger between Sibanye Gold Limited and Newshelf 1114 (Pty) Ltd would substantially prevent or lessen competition in the international gold and silver markets.
  2. 2 Whether the merger raises public interest concerns, specifically regarding potential retrenchments of employees.
  3. 3 Whether conditions should be imposed to prevent merger-specific retrenchments.

Ratio Decidendi

The Tribunal found that the merged entity would have a minimal market share in the international gold and silver markets, with no substantial lessening of competition anticipated. The market for gold is highly fragmented, and the merged entity would continue to face significant competition. Regarding public interest, the Tribunal noted concerns about possible retrenchments, but the evidence did not conclusively link these to the merger. To address any risk, the Tribunal imposed a condition prohibiting merger-specific retrenchments for two years post-implementation. The merging parties accepted this condition. The merger was approved subject to these conditions.

Court Disposition

Merger approved subject to conditions preventing merger-specific retrenchments for two years post-implementation.

Orders

  • The merger between Sibanye Gold Limited and Newshelf 1114 (Pty) Ltd 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).