IDC And Scaw Merger Conditionally Approved

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 management control.

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