COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 124/LM/Nov08
In the matter between:
Rustenburg Platinum Mines Limited Acquiring Firm
And
Changing Tides 166 (Pty) Ltd
And
Group Five Housing and Projects Development
Services (Pty) Ltd Target Firms
Panel : D Lewis (Presiding Member), N Manoim (Tribunal Member),
and Y Carrim (Tribunal Member)
Heard on : 10 December 2008
Order Issued : 10 December 2008
Reasons Issued: 12 January 2009
Reasons for Decision
Approval
[1] On 10 December 2008, the Tribunal unconditionally approved the merger
between Rustenburg Platinum Mines Limited and Changing Tides 166 (Pty) Ltd
and Group Five Housing and Projects Development Services (Pty) Ltd. The
reasons for approving the transaction follow.
The parties
[2] The primary acquiring firm is Rustenburg Platinum Mines Limited (“RPM”), a
company incorporated under the laws of the Republic of South Africa. RPM is
controlled by Anglo Platinum Limited, which is in turn controlled by Anglo
American plc (“Anglo American”). Anglo Platinum has in excess of 30
subsidiaries.
[3] The primary target firms are Changing Tides 166 (Pty) Ltd (“Changing Tides”),
in respect of its 721 residential housing units situated in Rustenburg, and
Group Five Housing and Projects Development Services (Pty) Ltd (“GFH”), in
respect of its 4 vacant stands situated in Rustenburg (“the target properties”).
[4] Changing Tides and GFH are wholly owned subsidiaries of Group Five Limited.
Description of the transaction
[5] In terms of this transaction, RPM will acquire 721 residential housing units from
Changing Tides and 4 vacant stands from GFH.
Rationale for the transaction
[6] The acquiring firm views this proposed transaction as a means to ensure that
its employees continue to have access to the residential accommodation
without having to lease the properties from Changing Tides.
[7] The parties submitted that residential accommodation is not the core business
of Group Five and therefore the proposed transaction presents an opportunity
to dispose of the housing units.
The parties’ activities
Primary acquiring group
[8] The acquiring group is a diversified group of mining companies with interests in
platinum, diamonds, base metals, ferrous metals, coal and industrial minerals
worldwide.
The target properties
[9] The target properties are 721 residential housing units and vacant stands,
situated in Rustenburg, North West.
Competition analysis
[10] There is no overlap in the activities of the merging firms, as the acquiring group
is not active in the residential property market where the target properties are
active. The proposed transaction is therefore unlikely to substantially prevent or
lessen competition in any market.
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Public Interest
[11] There are no public interest issues.
Conclusion
[12] The merger is approved unconditionally.
________________ 12 January 2009
N Manoim DATE
Tribunal Member
D Lewis and Y Carrim concurring
Tribunal Researcher : R Kariga
For the merging parties: Deneys Reitz Attorneys
For the Commission : T Ravhugoni (Mergers and Acquisitions)
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