Xstrata South Africa (Pty) Ltd and Eland Platinum Holdings Limited (87/LM/Aug07) [2007] ZACT 79 (29 October 2007)

Xstrata South Africa (Pty) Ltd and Eland Platinum Holdings Limited (87/LM/Aug07) [2007] ZACT 79 (29 October 2007)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the relevant markets for Platinum Group Metals, metallurgical grade chrome concentrate, or ferrochrome. The merged entity's market share in PGM would remain low, and significant competitors would continue to operate in the market. In the metallurgical grade chrome concentrate market, although the merged entity would have a 29% market share, credible alternative suppliers such as Samancor would remain. The transaction would not result in customer or input foreclosure in the ferrochrome market, as Eland Mines had not previously supplied metallurgical grade chrome to third parties. No...

Citation
[2007] ZACT 79
Parties
Applicant: Xstrata South Africa (Pty) Ltd; Respondent: Eland Platinum Holdings Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 October 2007
Case Number
87/LM/Aug07
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
U Bhoola, Y Carrim, M Holden
Legal Topics
Merger Control, Market Definition, Public Interest, Customer Foreclosure, Input Foreclosure
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Customer Foreclosure Input Foreclosure

Case Brief

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Parties

Xstrata South Africa (Pty) Ltd

Applicant

Eland Platinum Holdings Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Xstrata South Africa (Pty) Ltd and Eland Platinum Holdings Limited is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the relevant markets for Platinum Group Metals, metallurgical grade chrome concentrate, or ferrochrome. The merged entity's market share in PGM would remain low, and significant competitors would continue to operate in the market. In the metallurgical grade chrome concentrate market, although the merged entity would have a 29% market share, credible alternative suppliers such as Samancor would remain. The transaction would not result in customer or input foreclosure in the ferrochrome market, as Eland Mines had not previously supplied metallurgical grade chrome to third parties. No...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Xstrata South Africa (Pty) Ltd and Eland Platinum Holdings Limited is approved without conditions.