Siemens Aktiengesellscraft AG and Atecs Mannesmann AG (06/LM/Feb01) [2001] ZACT 12 (19 April 2001)

Siemens Aktiengesellscraft AG and Atecs Mannesmann AG (06/LM/Feb01) [2001] ZACT 12 (19 April 2001)

The Tribunal found that the merger would not result in any product overlaps between Siemens and Atecs' subsidiaries in South Africa. Although vertical integration would occur in the control panels and cranes market, sufficient competition exists, with Dematic holding a 25% market share and other competitors present. Siemens is not dominant in the assembled control panel market. The Tribunal also noted that no jobs would be lost and no other public interest concerns were raised. Accordingly, the merger is not likely to substantially prevent or lessen competition or negatively affect public interest, and approval was granted.

Citation
[2001] ZACT 12
Parties
Applicant: Siemens Aktiengesellscraft AG; Respondent: Atecs Mannesmann AG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 April 2001
Case Number
06/LM/Feb01
Procedural Posture
Large Merger Review / Merger Approval
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, D.R. Terblanche
Legal Topics
Large Merger Review, Vertical Integration, Market Definition, Public Interest Considerations
Competition Law Commercial and Corporate Large Merger Review Vertical Integration Market Definition Public Interest Considerations

Case Brief

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Parties

Siemens Aktiengesellscraft AG

Applicant

Atecs Mannesmann AG

Respondent

Procedural Posture

Large Merger Review / Merger Approval

Legal Issues

  1. 1 Whether the merger between Siemens Aktiengesellscraft AG and Atecs Mannesmann AG is likely to substantially prevent or lessen competition in the relevant South African markets.
  2. 2 Whether the merger raises any public interest concerns under section 12A(3) of the Competition Act.

Ratio Decidendi

The Tribunal found that the merger would not result in any product overlaps between Siemens and Atecs' subsidiaries in South Africa. Although vertical integration would occur in the control panels and cranes market, sufficient competition exists, with Dematic holding a 25% market share and other competitors present. Siemens is not dominant in the assembled control panel market. The Tribunal also noted that no jobs would be lost and no other public interest concerns were raised. Accordingly, the merger is not likely to substantially prevent or lessen competition or negatively affect public interest, and approval was granted.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Siemens Aktiengesellscraft AG and Atecs Mannesmann AG is approved without conditions.
  • The approval relates only to the Siemens transaction and excludes the Bosch lease transaction, which is to be filed separately as an intermediate merger.