Siemens AG v Dresser-Rand Group Inc (020024) [2015] ZACT 20 (13 March 2015)

Siemens AG v Dresser-Rand Group Inc (020024) [2015] ZACT 20 (13 March 2015)

The Tribunal found that the proposed merger between Siemens AG and Dresser-Rand Group Inc. would not substantially prevent or lessen competition in the relevant international markets for turbo compressors and industrial steam turbines with an output of up to 100MW. The merged entity's market share would remain below 25% in both markets, and competition from other major global suppliers would constrain any potential anti-competitive effects. The Commission's analysis of bidding data and customer feedback in South Africa confirmed that Siemens and Dresser-Rand are not close competitors and that their products are not considered similar by customers. Furthermore, the merger would not...

Citation
[2015] ZACT 20
Parties
Applicant: Siemens AG; Respondent: Dresser-Rand Group Inc.
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 March 2015
Case Number
020024
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed merger is approved unconditionally.
Judges
A Wessels, M Mazwai, M Mokuena
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Restraint of Trade
Competition Law Merger Control Market Share Analysis Public Interest Restraint of Trade

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Parties

Siemens AG

Applicant

Dresser-Rand Group Inc.

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Siemens AG and Dresser-Rand Group Inc. is likely to substantially prevent or lessen competition in the relevant international markets for turbo compressors and industrial steam turbines.
  2. 2 Whether the merger raises any public interest concerns, including effects on employment in South Africa.

Ratio Decidendi

The Tribunal found that the proposed merger between Siemens AG and Dresser-Rand Group Inc. would not substantially prevent or lessen competition in the relevant international markets for turbo compressors and industrial steam turbines with an output of up to 100MW. The merged entity's market share would remain below 25% in both markets, and competition from other major global suppliers would constrain any potential anti-competitive effects. The Commission's analysis of bidding data and customer feedback in South Africa confirmed that Siemens and Dresser-Rand are not close competitors and that their products are not considered similar by customers. Furthermore, the merger would not...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The acquisition by Siemens AG of Dresser-Rand Group Inc. is approved without conditions.