Traxy's Africa (Pty) Ltd v Metmar Limited (LM010Jun15) [2015] ZACT 67 (4 August 2015)

Traxy's Africa (Pty) Ltd v Metmar Limited (LM010Jun15) [2015] ZACT 67 (4 August 2015)

The Tribunal found that the merged entity would have an estimated market share of 5% in each of the three relevant markets, with only a 1% accretion. The presence of large competitors such as Glencore International AG, Noble Group, Mertex Canada, Gunvor International B.V, and Mercuria Energy Group Limited would continue to constrain the merged entity. The vertical relationship between the parties was minor, with purchases accounting for less than 5% of each other's turnover, and would not result in foreclosure. No public interest concerns were raised. Accordingly, the Tribunal concluded that the proposed transaction was unlikely to substantially prevent or lessen competition and approved...

Citation
[2015] ZACT 67
Parties
Applicant: Traxys Africa (Pty) Ltd; Respondent: Metmar Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 August 2015
Case Number
LM040Jun15
Procedural Posture
Merger Control / Approval of Merger
Outcome
Merger approved unconditionally.
Judges
N Manoim, Anton Roskam, lmraan Valodia
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Market Share Analysis, Public Interest
Competition Law Merger Control Horizontal Overlap Vertical Relationship Market Share Analysis Public Interest

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Traxys Africa (Pty) Ltd

Applicant

Metmar Limited

Respondent

Procedural Posture

Merger Control / Approval of Merger

Legal Issues

  1. 1 Whether the proposed merger between Traxys Africa (Pty) Ltd and Metmar Limited is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the merged entity would have an estimated market share of 5% in each of the three relevant markets, with only a 1% accretion. The presence of large competitors such as Glencore International AG, Noble Group, Mertex Canada, Gunvor International B.V, and Mercuria Energy Group Limited would continue to constrain the merged entity. The vertical relationship between the parties was minor, with purchases accounting for less than 5% of each other's turnover, and would not result in foreclosure. No public interest concerns were raised. Accordingly, the Tribunal concluded that the proposed transaction was unlikely to substantially prevent or lessen competition and approved...

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Traxys Africa (Pty) Ltd of the entire issued share capital in Metmar Limited is approved unconditionally.