On 10 July 2012 the Competition Commission (Commission) unconditionally approved the transaction between MOGS (Proprietary) Limited (MOGS) and A&R Engineering and Mining Supplies (Proprietary) Limited (A&R Engineering) and Lamp Room Solutions and Consulting (Proprietary) Limited (LSC).

MOGS, the acquiring firm, applied for approval for its acquisition of A&R Engineering and LSC. MOGS is involved in the provision of pipeline rehabilitation, intervention and maintenance services. A&R Engineering supplies products and services for underground and surface transportation and monitoring systems; and also remanufactures and repairs existing equipment. LSC is involved in the maintenance of underground lamp rooms in mines and embedded QT developments.

The Commission found that the transaction would not give rise to competition concerns from a horizontal perspective as MOGS and its subsidiaries do not supply overlapping products. The Commission found some vertical aspects to the transaction, but found that these exist in areas where the supply is minimal and is therefore unlikely to result in foreclosure concerns. It also found that the transaction did not raise any public interest concerns.

The Commission accordingly approved the transaction without conditions.

Webber Wentzel acted for the merging parties.

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