Intervention in the Competition Tribunal hearing on the Glencore – Xtrata merger

Oct 1, 2012

Eskom was concerned that the proposed merger between Glencore and Xtrata would limit competition in the South African coal market and increase upward pressure on coal prices due to increased exposure to export parity prices. Eskom intended to intervene in the merger proceedings before the Competition Tribunal and required an expert economists’ report as part of this process.

Project Description

Grové collaborated with Econex in preparing the report. The report considered the likely market power of the merged entity, Eskom’s countervailing buyer power and possible anti-competitive effects of the merger. It also analysed the potential effects that the proposed merger were likely to have on Eskom’s coal purchases, future electricity tariffs and on the South African economy more widely.