Professional Update
A
monthly newsletter for KZN Attorneys from the Kwazulu-Natal Law Society

17 July 2009

This professional service draws attention to current and important items of news
 and members are directed to the hosts' websites

InfoUpdate 15 of 2009
Competition Commission, Tribunal and Appeal Court

Electronic copies of this information may be obtained from our librarians at help@lawlibrary.co.za or click on the underlined hyperlink where relevant

Competition Commission, Tribunal and Appeal Court - http://www.compcom.co.za/ ; http://www.comptrib.co.za/

Concern over anti-competitive conduct in SA - 15 July
David Lewis, outgoing chairperson of the Competition Tribunal, took to the podium at the Neotel/Mail & Guardian Business Breakfast in Johannesburg on Wednesday morning, to give his own take on the current state of competition in South Africa, which he assesses "with some considerable concern".  - Mail & Guardian website

Broadband is pitiful, says CompCom - 15 July
Competition Tribunal chairman David Lewis on Wednesday called for more effective regulation in the telecoms sector to reduce costs. Speaking at a breakfast function hosted by the Mail & Guardian, Lewis pointed to current jurisdiction issues between the sector regulator, Icasa, and the competition regulator as the leading obstacle towards more effective regulation. Lewis used the opportunity to flex the tribunal's muscles. "We are far better set up than Icasa to resolve abuse of dominance," he said, highlighting the adversarial nature of its proceedings and that it has "more information at our disposal". - MyBroadband website

Tribunal chair concerned about competition in SA economy - 15 July
"I am not happy with the state of competition in South Africa – it is an area to be viewed with considerable concern", said Competition Tribunal chairperson David Lewis on Wednesday. Addressing delegated gathered at the Neotel and Mail & Guardian business breakfast in Rosebank, he added that South Africa inherited  an economy that was not only characterised by high levels of concentration, but also by widespread anti-competitive conduct, including collusion. - Creamer Media's Engineering News website

Tribunal raring to sort out telecoms - 16 July
The Competition Tribunal is eager to flex its muscles over the telecommunications sector, believing it could create a more affordable and fairer market than the sector's ineffectual regulator has achieved. SA's telecoms costs were amongst the highest in the world, broadband penetration was pitiful and service levels were unacceptable, said tribunal chairman David Lewis. Things would have been different if the Competition Commission and the tribunal had clear jurisdiction over the sector, as they had the investigative powers and the experience to crack down on the abuse of dominance, he said. - allAfrica website

Commission looks into construction tenders - 16 July
The Competition Commission has launched an investigation into the allocation of multibillion-rand tenders for the construction of soccer stadiums across the country, Business Report said on Thursday. This came amid concerns about the substantial cost escalations in each of the awarded tenders, the newspaper said. - Mail & Guardian website

Keyphrases :
BAM International
Basil Read
Bouygues Construction
Grinaker-LTA
Group Five
Murray & Roberts (M&R)
Stefanutti Stocks
Wilson Bayly Holmes-Ovcon (WBHO)

Firms deny price-rigging, collusion  - 16 July
Three of the eight construction companies named by the competition commission in its investigation into possible 2010 Fifa World Cup stadium contract bid price-rigging and collusion yesterday denied wrongdoing. - Business Report website

Competition Commission investigates 2010 construction firms - 16 July
Interview with Mike Wylie, executive chairman, Wilson Bayly Holmes-Ovcon and Alec Hogg on the Moneyweb website
"What went on behind doors at the strike negotiations, and why the Competition Commission is investigating"

Xstrata / Anglo American

New Anglo boss on hotline to minister - 11 July
In one of his first acts as the newly appointed chairman of Anglo American, Sir John Parker had a chat with SA's mining minister Susan Shabangu. Given the political sensitivity surrounding the chairmanship of Anglo, this was a wise decision. On Thursday, Shabangu not only called on Anglo to name a black South African chairman but apparently had a list of government-approved nominees from which the company could choose. But on Friday, after Anglo's announcement, she accepted the situation and welcomed Parker’s appointment. - The Times website

Xstrata sticks to nil-premium merger with Anglo - 13 July
Mining group Xstrata remains committed to a nil-premium merger with Anglo American, the company said on Sunday after a newspaper said it will offer a £5-billion sweetener to seal the deal. The Observer newspaper cited sources as saying Xstrata would raise the money via a rights issue because its debt-laden balance sheet had made it difficult to justify further borrowings. But Xstrata said in a statement sent to Reuters its proposal "remains a nil-premium merger of equals, in which both companies' shareholders will share equally the substantial benefits that are uniquely available from a merger". - Mail & Guardian website

South African govt softens stance on Xstrata-Anglo merger, requests detail - 13 July
In a clear softening of its original hard-line attitude towards Xstrata's proposed merger of equals with Anglo American, South Africa's Ministry of Mineral Resources has asked for greater detail on the proposal after meeting both CEOs, mineral resources departmental spokesperson Jeremy Michaels has told Mining Weekly Online. Michaels said that both Xstrata CEO Mick Davis and Anglo CEO Cynthia Carroll had met with Mineral Resources Minister Susan Shabangu and Mineral Resources DG Sandile Nogxina, who had requested more information on the proposed deal. The government's current stance was one of close observation of developments. - Creamer Media's Mining Weekly website

Anglo merger hits further obstacles on operating style - 14 July
A stumbling block to the completion of the merger Xstrata proposed with Anglo American could be the different way the companies operated, analysts said yesterday. Anglo's new chairman, John Parker, last week told the Financial Times that "mergers have big risks that are not shown on a spread sheet and they are cultural in nature". He added : "It's those softer issues that often can lead to a big destruction of value and a real clash of personalities, of cultures and of management philosophies". - Business Report website

Blow to transformation as Anglo's South Africa head Dlamini quits - 16 July
Anglo American South Africa head Kuseni Dlamini has quit the company to take up a new opportunity outside the group, the company said on Thursday. Mining Weekly Online understood, at the time of going to press, that Kuseni would replace Paul Hanratty as South Africa CEO of assurance company Old Mutual. Dlamini's departure whittles down Anglo's attempts to introduce managerial transformation within its top ranks and follows hot on the heels of the company disregarding a specific Ministerial request that a South African black be appointed chairperson of the London-listed diversified mining company. Instead, Anglo proceeded to appoint Sir John Parker of the UK as chairperson. The departure of Dlamini also comes at a time when the South African government appears to be softening its initial hard-line rejection of the Xstrata overture for a merger of equals with Anglo. - Creamer Media's Mining Weekly website

See also : Against the current on the boat of an old mining boss [interview with Graham Boustred]

Competition Tribunal

25 June 2009
05/CR/Feb05 [2009] ZACT 46
Competition Commission and Another v British American Tobacco South Africa (Pty) Ltd

11 June 2009
01/LM/Jan09 [2009] ZACT 45
ApexHi Properties Limited v Business Venture Investments No.1232 (Pty) Ltd

11 June 2009
126/LM/Dec08 [2009] ZACT 44
Steinhoff Doors and Building Materials (Pty) Ltd and Another v Wierdapark Home Centre (Pty) Ltd and Others

10 June 2009
32/LM/Mar09 [2009] ZACT 43
Mining Gas and Oil Services (Pty) Ltd v Elbroc Mining Products (Pty) Ltd

9 June 2009
136/LM/Dec08 [2009] ZACT 42
BASF Handels-Und Exportgesellschaft mbH v Ciba Holding AG

5 June 2009
19/LM/Feb09 [2009] ZACT 41
Main Street 581 (Pty) Ltd v Century Casinos Africa (Pty) Ltd

5 June 2009
20/LM/Feb09 [2009] ZACT 40
Masscash Holdings (Pty) Ltd v Sherewa Investments (Pty) Ltd

5 June 2009
21/LM/Feb09 [2009] ZACT 39
Federated Timbers (Pty) Ltd trading as Builders Trade Depot v KBS Building Supplies CC and Others

3 June 2009
28/LM/Feb09 [2009] ZACT 38
PSG Konsult Ltd v Tlotlisa Securities (Pty) Ltd

2 June 2009
17/LM/Feb09 [2009] ZACT 37
Man AG v Volkswagen Caminhoes E Onibus Industrai

27 May 2009
130/LM/Dec08 [2009] ZACT 36
Business Venture Investments No 1311 (Pty) Ltd v Sea Harvest Corporation Ltd

26 May 2009
25/LM/Feb09 [2009] ZACT 35
Pahana Investments 93 (Pty) Ltd v Pahana Investments 91 (Pty) Ltd

21 May 2009
15/CR/Feb07 [2009] ZACT 48 ; 50/CR/May08 [2009] ZACT 34
Competition Commission v Tiger Brands Ltd trading as Albany and Another ; Competition Commission v Pioneer Foods (Pty) Ltd trading as Sasko and Another

20 May 2009
31/CR/May05 [2009] ZACT 33
Competition Commission South Africa v Sasol Chemical Industries Ltd ; Competition Commission South Africa v Sasol Chemical Industries Ltd and Others

13 May 2009
128/LM/Dec08 [2009] ZACT 32
African Revival Investments Holdings (Pty) Ltd v Siyahamba Engineering (Pty) Ltd

12 May 2009
127/LM/Dec08 [2009] ZACT 31
Aspen Pharmacare Holdings Ltd v Fine Chemicals Corporation (Pty) Ltd

12 May 2009
131/LM/Dec08 [2009] ZACT 30
Crest Chemicals (Pty) Ltd v CH Chemicals (Pty) Ltd

7 May 2009
29/LM/Mar09 [2009] ZACT 29
Aquarius Platinum SA (Pty) Ltd and Another v First Platinum (Pty) Ltd

6 May 2009
05/LM/Jan09 [2009] ZACT 28
Rio Tinto / Rio Tinto Ltd and Another v Richards Bay Mining (Pty) Ltd and Another

6 May 2009
121/LM/Nov08 [2009] ZACT 27
Shanduka Coal (Pty) Ltd v Springlake Holdings (Pty) Ltd

30 April 2009
108/LM/Oct08 [2009] ZACT 26
DCD Dorbyl (Pty) Ltd v Globe Engineering Works (Pty) Ltd

InfoUpdate : an Information Service supplied by the KwaZulu-Natal Law Society