Competition Appeal Court upholds Tribunal’s prohibition of Imerys, Andalusite merger
JOHANNESBURG (miningweekly.com) – The Competition Appeal Court this week dismissed an appeal by andalusite miners Imerys and Andalusite Resources to overturn a decision by the Competition Tribunal to prohibit a merger between the two companies.
The appeal was heard in December 2016.
The tribunal in September 2016 prohibited the merger, stating that it would lead to a monopoly in the mining, processing and sale of andalusite in South Africa, as well as a near-monopoly in the global sale of andalusite.
The Competition Commission had also, in April 2015, prohibited the proposed merger, after which Imerys and Andalusite Resources approached the tribunal to consider the merger and hearings were held over several months in 2015 and 2016.
Although the companies had proposed certain behavioural conditions, the tribunal deemed these inadequate and impractical from a monitoring and compliance perspective.
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