South African Gas Development Company SOC Ltd and Another v Republic of Mozambique Pipeline Investments Company (Pty) Ltd (LM116Nov21) [2022] ZACT 11 (5 January 2022)

South African Gas Development Company SOC Ltd and Another v Republic of Mozambique Pipeline Investments Company (Pty) Ltd (LM116Nov21) [2022] ZACT 11 (5 January 2022)

The Tribunal found that the proposed transaction, in which iGas and CMG would each acquire an additional 15% shareholding in ROMPCO from Sasol SA, does not result in any horizontal overlap or removal of a competitor from the market. The ROMPCO pipeline remains the only pipeline from Mozambique to Secunda, and the...

Source-derived case information.

Citation
[2022] ZACT 11
Parties
Applicant: South African Gas Development Company SOC Ltd; Applicant: Companhia Moçambicana de Gasoduto S.A.; Respondent: Republic of Mozambique Pipeline Investments Company (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 January 2022
Case Number
LM116Nov21
Procedural Posture
Large Merger / Reasons for Decision
Outcome
The merger was unconditionally approved.
Judges
Mondo Mazwai, Yasmin Carrim, Andreas Wessels
Legal Topics
Large Merger Review, Market Structure, Public Interest, Horizontal Overlap, Employment Effects
Competition Law Commercial and Corporate Large Merger Review Market Structure Public Interest Horizontal Overlap Employment Effects

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Parties

South African Gas Development Company SOC Ltd

Applicant

Companhia Moçambicana de Gasoduto S.A.

Applicant

Republic of Mozambique Pipeline Investments Company (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed transaction is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether there is any horizontal overlap between the merging parties' activities.

Ratio Decidendi

The Tribunal found that the proposed transaction, in which iGas and CMG would each acquire an additional 15% shareholding in ROMPCO from Sasol SA, does not result in any horizontal overlap or removal of a competitor from the market. The ROMPCO pipeline remains the only pipeline from Mozambique to Secunda, and the transaction does not alter the market structure. The Commission's investigation revealed no competition concerns or negative public interest effects, including employment. No third party objected. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition or negatively affect public interest, and approved the transaction...

Court Disposition

The merger was unconditionally approved.

Orders

  • The large merger between iGas, CMG, and ROMPCO is approved without conditions.