Impala Platinum Holdings Limited and Islandsite Investments 225 (Pty) Ltd (03/LM/Jan07) [2007] ZACT 18 (22 February 2007)

Impala Platinum Holdings Limited and Islandsite Investments 225 (Pty) Ltd (03/LM/Jan07) [2007] ZACT 18 (22 February 2007)

The Tribunal found that although Afplats had not commenced mining operations, it owned significant PGM reserves and was a potential producer. The transaction would result in Implats acquiring joint control over Newco and a minority shareholding, with market share accretions for each PGM remaining below 3%. The Tribunal determined that the transaction would not substantially prevent or lessen competition in any relevant market, as the increase in concentration was minimal and vertical integration would not enable foreclosure or anti-competitive conduct. The Tribunal also found no public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2007] ZACT 18
Parties
Applicant: Impala Platinum Holdings Limited; Respondent: Islandsite Investments 225 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 February 2007
Case Number
03/LM/Jan07
Procedural Posture
Merger Review / Decision on Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, N Manoim, M Mokuena
Legal Topics
Merger Control, Vertical Integration, Market Definition, Joint Control
Competition Law Commercial and Corporate Merger Control Vertical Integration Market Definition Joint Control

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Parties

Impala Platinum Holdings Limited

Applicant

Islandsite Investments 225 (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger between Impala Platinum Holdings Limited and Islandsite Investments 225 (Pty) Ltd will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction gives rise to anti-competitive horizontal or vertical effects.
  3. 3 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that although Afplats had not commenced mining operations, it owned significant PGM reserves and was a potential producer. The transaction would result in Implats acquiring joint control over Newco and a minority shareholding, with market share accretions for each PGM remaining below 3%. The Tribunal determined that the transaction would not substantially prevent or lessen competition in any relevant market, as the increase in concentration was minimal and vertical integration would not enable foreclosure or anti-competitive conduct. The Tribunal also found no public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Impala Platinum Holdings Limited and Islandsite Investments 225 (Pty) Ltd is approved without conditions.