The role for competition policy in economic development: the South African experience

Figures & data

Summary of control of JSE market capitalisation (% of total)¹

	1985	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2002^4
Anglo American	53,6	44,2	42,4	33,7	38,2	43,3	37,1	27,5	22,6	17,4	22,3	25,4
Corporation
Sanlam	12,2	13,2	13,2	15,6	12,0	10,5	12,4	11,0	10,6	9,9	12,5	4,2
Liberty Life	2,0	2,6	3,7	4,7	6,2	7,2	7,3	11,1	11,9	9,5	7,1	3,2
Rembrandt/Remgro	3,8	13,6	15,2	14,6	15,5	13,0	7,8	10,6	9,9	9,0	10,4	13,7
SA Mutual/Old	10,6	10,2	10,4	14,2	10,7	9,7	11,2	10,2	11,4	8,8	10,6	13,3
Mutual
Anglovaal^2	2,1	2,5	2,9	2,9	3,4	3,6	2,9	3,0	1,5	0,8	0,7
Black‐owned groups^3	–	–	–	–	–	–	–	6,3	9,3	8,9	6,8
Top four groups	80,2	81,3	82,0	79,9	79,2	80,1	79,4	69,7	64,9	53,9	62,2	59,8
collectively
Notes: 1. Control is assessed by McGregors, taking into account the various cross-holdings of shares that exist, and may be associated with a relatively small direct shareholding in any given company. 2. In 1998, the Anglovaal shareholding was split equally, giving the Hersov and Menell families each control over 0,4 per cent of the Johannesburg Stock Exchange (JSE) capitalisation. 3. The black‐owned groups are identified as such by McGregors on the basis of ownership. McGregors did not include such an identification for 2002. 4. Shares for 2002 were calculated from the identification of control and the market capitalisation for November 2002 given in McGregors (2003). The holdings of the Rupert and Hertzog families in Richemont and Venfin meant they were included under Remgro, although the two companies are held separately. Sources: McGregors (1999, 2000, 2003).

Acquisition assessments by the Competition Board

	1993	1994	1995	1996	1997
Preliminary assessments	41 (40)	42 (40)	34 (30)	24 (20)	35 (35)
Consultations	10 (10)	–	2 (2)	– ^2	– ^2
Investigations	3 (2)	3 (2)	3 (1)	6 (4)	2 (1)
Notes: 1. Numbers refer to total cases, i.e. completed and uncompleted. Numbers in parentheses refer to cases completed in a particular year. This means that the same case may be recorded in two or more years if the investigation was carried over. 2. In 1996 and 1997, preliminary assessments and consultations are grouped together. Preliminary assessments refer to assessments of whether transactions could constitute acquisitions as defined under the Act. Consultations refer to formal processes of engagement in connection with an acquisition. Sources: Competition Board (1996) and various other years.

Mergers prohibited, or approved subject to conditions, 1999–2003

Merging parties	Ruling	Reason/conditions
Bromor foods–Game	Approved subject to conditions	Brands to be maintained as competitors
Joshua Doore–Ellerines	Prohibited	Horizontal merger in concentrated market
Nasionale Pers–Educor	Approved subject to conditions	Subject to maintaining competing operations
Tongaat Hulett–Transvaal Suiker Beperk	Prohibited	Horizontal merger in concentrated market
Nampak–Malbak	Approved subject to divestment	Horizontal overlap in one market
Nedcor–Standard Bank	Prohibited by the Minister of Finance	Horizontal merger in concentrated market
Iscor–Saldanha Steel	Approved subject to conditions	Failing firm justified anticompetition merger, with conditions that compete in the local market
Nestle–Heinz/Tiger Foods (Pet foods)	Approved subject to conditions	Horizontal merger, subject to divestment
Mondi–Kohler Cores & Tubes	Prohibited	Vertical merger, but possibility of foreclosure and collusion
Astral–National Chick	Approved subject to conditions	Horizontal and vertical merger, with conditions on conduct and divestment
Distell–SFW	Approved subject to conditions	Horizontal overlap in one market
Joshua Doore–Profurn	Approved subject to conditions	The failing firm justified the merger, on condition that the firm should continue to buy from independent suppliers
Coleus (SAB)–Rheem	Approved subject to conditions	Vertical merger, subject to future divestment
Chemserve–Senmin	Approved subject to conditions	Continue to supply competitors of vertically integrated subsidiary
Note: In the Unilever–Bestfoods merger, divestment of some operations was agreed on by the parties before the Tribunal hearing.