Siemens Aktiengesellschaft Österreich and VA Technologie AG (49/LM/Jun05) [2005] ZACT 55 (15 August 2005)

Siemens Aktiengesellschaft Österreich and VA Technologie AG (49/LM/Jun05) [2005] ZACT 55 (15 August 2005)

The Tribunal found that the merger between Siemens Aktiengesellschaft Österreich and VA Technologie AG would not substantially prevent or lessen competition in any of the identified markets in South Africa. The combined market shares in the relevant segments—high voltage products and protective relays—were found to be low, with the increment resulting from VA Tech’s share being minor. The market remains competitive with several other players. No significant horizontal or vertical competition concerns were identified. Furthermore, there were no public interest concerns that would warrant prohibition or conditions. The Tribunal therefore approved the merger unconditionally.

Citation
[2005] ZACT 55
Parties
Applicant: Siemens Aktiengesellschaft Österreich; Respondent: VA Technologie AG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 August 2005
Case Number
49/LM/Jun05
Procedural Posture
Large Merger / Merger Clearance Decision
Outcome
Merger unconditionally approved.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Large Merger Review, Horizontal Merger Assessment, Market Share Analysis, Public Interest Consideration
Competition Law Large Merger Review Horizontal Merger Assessment Market Share Analysis Public Interest Consideration

Case Brief

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Parties

Siemens Aktiengesellschaft Österreich

Applicant

VA Technologie AG

Respondent

Procedural Posture

Large Merger / Merger Clearance Decision

Legal Issues

  1. 1 Whether the proposed merger between Siemens Aktiengesellschaft Österreich and VA Technologie AG will substantially prevent or lessen competition in the relevant South African markets.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the merger between Siemens Aktiengesellschaft Österreich and VA Technologie AG would not substantially prevent or lessen competition in any of the identified markets in South Africa. The combined market shares in the relevant segments—high voltage products and protective relays—were found to be low, with the increment resulting from VA Tech’s share being minor. The market remains competitive with several other players. No significant horizontal or vertical competition concerns were identified. Furthermore, there were no public interest concerns that would warrant prohibition or conditions. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Siemens Aktiengesellschaft Österreich and VA Technologie AG is approved without conditions.