TWO RIVERS PLATINUM LIMITED and ASSMANG LIMITED (54/LM/Sep01) [2001] ZACT 43 (2 November 2001)

TWO RIVERS PLATINUM LIMITED and ASSMANG LIMITED (54/LM/Sep01) [2001] ZACT 43 (2 November 2001)

The Tribunal finds that the market for platinum group metals is highly concentrated and vertically integrated, dominated by a small number of major producers who control both mining and refining. While the transaction is part of a pattern of acquisitions that collectively increase concentration and exclusionary effects, the merger itself does not, in isolation, substantially lessen or prevent competition. The anti-competitive structure of the market is entrenched by previous mergers and vertical integration, and cannot be reversed by prohibiting or imposing conditions on this transaction. The Tribunal concludes that vigilant monitoring of market conduct is required to prevent abuse, but...

Citation
[2001] ZACT 43
Parties
Applicant: Two Rivers Platinum Limited; Respondent: Assmang Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 November 2001
Case Number
54/LM/Sep01
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger approved without conditions.
Judges
DH Lewis, NM Manoim, D Terblanche
Legal Topics
Large Merger Review, Oligopoly Analysis, Vertical Integration, Market Concentration, Potential Competition, Platinum Group Metals
Competition Law Commercial and Corporate Large Merger Review Oligopoly Analysis Vertical Integration Market Concentration Potential Competition Platinum Group Metals

Case Brief

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Parties

Two Rivers Platinum Limited

Applicant

Assmang Limited

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Does the merger between Two Rivers Platinum Limited and Assmang Limited substantially lessen or prevent competition in the market for platinum group metals?
  2. 2 Is the structure of the platinum group metals market anti-competitive due to concentration and vertical integration?
  3. 3 Should conditions be imposed on the merger to promote competition?

Ratio Decidendi

The Tribunal finds that the market for platinum group metals is highly concentrated and vertically integrated, dominated by a small number of major producers who control both mining and refining. While the transaction is part of a pattern of acquisitions that collectively increase concentration and exclusionary effects, the merger itself does not, in isolation, substantially lessen or prevent competition. The anti-competitive structure of the market is entrenched by previous mergers and vertical integration, and cannot be reversed by prohibiting or imposing conditions on this transaction. The Tribunal concludes that vigilant monitoring of market conduct is required to prevent abuse, but...

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Two Rivers Platinum Limited and Assmang Limited is approved without conditions.