On 5 November 2012 the Competition Tribunal provided its reasons
for approving, with conditions, the acquisition of ArcelorMittal
South Africa's (AMSA) interests in the entities that constitute
the Scaw Group (including Scaw South Africa and Consolidated Wire
Industries). The Industrial Development Corporation of SA acquired
these interests, as well as Anglo American's interests in a
number of foreign entities in terms of which Scaw South Africa has
Although there were no direct horizontal overlaps between the
activities of the parties, the Competition Commission was concerned
about the IDC's shareholding in AMSA. The latter resulted in an
indirect horizontal overlap as the activities of Scaw and AMSA
coincide with respect to the upstream manufacturing and
distribution of long steel products. The Commission found that
there were no likely adverse unilateral effects arising from the
proposed transaction. In addition, the Commission found that it was
unlikely that the proposed transaction would lead to vertical
foreclosure concerns. Given the IDC's shareholding in both
firms, the Commission was concerned about post-merger information
exchange between Scaw and AMSA. The Tribunal agreed with the
Commission that the proposed transaction was likely to facilitate
the exchange of information between Scaw and AMSA, and accordingly
imposed behavioural conditions. The Tribunal ordered that:
there may be no cross-directorship by IDC-appointed directors
in Scaw and AMSA
the sharing of competitively sensitive, non-public information
in respect of Scaw and AMSA does not take place between the
management teams responsible for interests within the IDC; and
the IDC is to develop and implement a policy to ensure that the
sharing of competitively sensitive, non-public information does not
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