Sasol Chemical Industries Ltd and Fedmis Joint Venture Ltd (96/LM/Nov00) [2000] ZACT 51 (21 December 2000)

Sasol Chemical Industries Ltd and Fedmis Joint Venture Ltd (96/LM/Nov00) [2000] ZACT 51 (21 December 2000)

The Tribunal found that the merger is a vertical transaction in which Sasol Chemical Industries Ltd becomes the sole shareholder of Fedmis Joint Venture Ltd, previously jointly controlled with AECI Limited. The merger does not alter Fedmis's market share, which remains at 35%, with Indian Ocean Fertilizer Company (Pty) Ltd as the largest competitor at 40%. There is no product overlap between the merging parties, and customers are not legally bound to source exclusively from Fedmis. No objections were raised by customers, and the transaction does not affect employment or other public interest concerns. The Tribunal concluded that the merger will not substantially prevent or lessen...

Citation
[2000] ZACT 51
Parties
Applicant: Sasol Chemical Industries Ltd; Respondent: Fedmis Joint Venture Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 December 2000
Case Number
96/LM/Nov00
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, D.R. Terblanche
Legal Topics
Vertical Merger, Market Definition, Public Interest, Merger Clearance
Competition Law Commercial and Corporate Vertical Merger Market Definition Public Interest Merger Clearance

Case Brief

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Parties

Sasol Chemical Industries Ltd

Applicant

Fedmis Joint Venture Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Whether the vertical merger between Sasol Chemical Industries Ltd and Fedmis Joint Venture Ltd will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns under section 16(3) of the Competition Act.

Ratio Decidendi

The Tribunal found that the merger is a vertical transaction in which Sasol Chemical Industries Ltd becomes the sole shareholder of Fedmis Joint Venture Ltd, previously jointly controlled with AECI Limited. The merger does not alter Fedmis's market share, which remains at 35%, with Indian Ocean Fertilizer Company (Pty) Ltd as the largest competitor at 40%. There is no product overlap between the merging parties, and customers are not legally bound to source exclusively from Fedmis. No objections were raised by customers, and the transaction does not affect employment or other public interest concerns. The Tribunal concluded that the merger will not substantially prevent or lessen...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Sasol Chemical Industries Ltd and Fedmis Joint Venture Ltd is approved without conditions.
  • A Merger Clearance Certificate is issued.