WILRU Investments One Hundred Thirty Four (Pty) Ltd v Exxaro Base Metals Namibia (Pty) Ltd (21/LM/Mar12) [2012] ZACT 37 (14 May 2012)

WILRU Investments One Hundred Thirty Four (Pty) Ltd v Exxaro Base Metals Namibia (Pty) Ltd (21/LM/Mar12) [2012] ZACT 37 (14 May 2012)

The Tribunal found that the proposed transaction does not constitute a horizontal or vertical merger, but rather a change to sole control over the zinc asset portfolio in Namibia. There is no product overlap between the activities of the merging parties in South Africa, and RPZC no longer supplies zinc or lead to South Africa. The market for zinc and lead production is competitive globally, with several other major players. The transaction will not adversely affect employment, as there are no South African employees involved, and no other public interest issues arise. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any...

Citation
[2012] ZACT 37
Parties
Applicant: WILRU Investments One Hundred Thirty Four (Pty) Ltd; Respondent: Exxaro Base Metals Namibia (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 May 2012
Case Number
21/LM/Mar12
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Yasmin Carrim, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Sole Control Acquisition, Public Interest, Market Definition
Competition Law Merger Control Sole Control Acquisition Public Interest Market Definition

Case Brief

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Parties

WILRU Investments One Hundred Thirty Four (Pty) Ltd

Applicant

Exxaro Base Metals Namibia (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition of Exxaro Base Metals Namibia (Pty) Ltd by WILRU Investments One Hundred Thirty Four (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the proposed transaction does not constitute a horizontal or vertical merger, but rather a change to sole control over the zinc asset portfolio in Namibia. There is no product overlap between the activities of the merging parties in South Africa, and RPZC no longer supplies zinc or lead to South Africa. The market for zinc and lead production is competitive globally, with several other major players. The transaction will not adversely affect employment, as there are no South African employees involved, and no other public interest issues arise. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between WILRU Investments One Hundred Thirty Four (Pty) Ltd and Exxaro Base Metals Namibia (Pty) Ltd is approved without conditions.