Umlingo Trade and Invest 71 (Pty) Ltd v Mining Capital Equipment Business, A Division of Longyear S.A (Pty) Ltd (08/LM/Jan08) [2008] ZACT 21 (7 April 2008)

Umlingo Trade and Invest 71 (Pty) Ltd v Mining Capital Equipment Business, A Division of Longyear S.A (Pty) Ltd (08/LM/Jan08) [2008] ZACT 21 (7 April 2008)

The Tribunal found that Umlingo Trade and Invest 71 (Pty) Ltd, as the acquiring firm, does not have any existing business activities that overlap with those of the Mining Capital Equipment Business, the target firm. The Commission's investigation confirmed that the acquiring firm is not active in the manufacturing and distribution of mining equipment, which is the area in which the target firm operates. As a result, the proposed transaction does not raise competition concerns and is unlikely to substantially prevent or lessen competition in the relevant market. Furthermore, there are no public interest issues identified. The Tribunal therefore approved the merger unconditionally.

Citation
[2008] ZACT 21
Parties
Applicant: Umlingo Trade and Invest 71 (Pty) Ltd; Respondent: Mining Capital Equipment Business, A Division of Longyear S.A (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 April 2008
Case Number
08/LM/Jan08
Procedural Posture
Merger Clearance / Decision on Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, U Bhoola
Legal Topics
Merger Clearance, Substantial Lessening of Competition, Public Interest, Control Acquisition
Competition Law Merger Clearance Substantial Lessening of Competition Public Interest Control Acquisition

Case Brief

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Parties

Umlingo Trade and Invest 71 (Pty) Ltd

Applicant

Mining Capital Equipment Business, A Division of Longyear S.A (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that Umlingo Trade and Invest 71 (Pty) Ltd, as the acquiring firm, does not have any existing business activities that overlap with those of the Mining Capital Equipment Business, the target firm. The Commission's investigation confirmed that the acquiring firm is not active in the manufacturing and distribution of mining equipment, which is the area in which the target firm operates. As a result, the proposed transaction does not raise competition concerns and is unlikely to substantially prevent or lessen competition in the relevant market. Furthermore, there are no public interest issues identified. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Umlingo Trade and Invest 71 (Pty) Ltd and Mining Capital Equipment Business, a Division of Longyear S.A. (Pty) Ltd is approved without conditions.