LML4802 MAY/JUNE
EXAM 2024 – DUE 27
MAY 2024
QUESTIONS AND ANSWERS
, CONFIDENTIAL
Page 1 of 9
LML4802
May/June 2024
UNIVERSITY EXAMINATIONS
May/June 2024
LML4802
Competition and Trademarks Law
100 Marks
Duration 80 Hours
The question paper consists of NINE pages.
INSTRUCTIONS FOR A PORTFOLIO OR TAKE-HOME EXAM ON MYEXAMS
PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY BEFORE
ANSWERING THE EXAMINATION QUESTIONS.
, CONFIDENTIAL
Page 2 of 9
LML4802
May/June 2024
SECTION A: COMPETITION LAW QUESTION 1
1.1 BHP Group intends to acquire Anglo-American in South Africa.
Conduct focused research on the companies guided by various provisions of
merger control. Thereafter, identify and classify the type of merger, apply the
relevant factors considered for evaluation of the merger and make a
recommendation in relation to the merger as the competition commission. You
must not discuss the procedure and notification provisions of merger regulation.
(10)
Research on BHP Group and Anglo-American
BHP Group
BHP Group, formerly known as BHP Billiton, is one of the world's largest mining and
resource companies. It has a diversified portfolio, with operations in several
commodities including iron ore, coal, copper, petroleum, and nickel. BHP operates
globally, including significant operations in Australia and the Americas.
Anglo American
Anglo American is another global mining company with a diverse range of operations. It
has significant business activities in diamonds (through De Beers), platinum group
metals, copper, nickel, iron ore, and coal. Anglo American also has operations in
various continents, including Africa, Europe, and the Americas.
Type of Merger
The acquisition of Anglo American by BHP Group would be classified as a horizontal
merger. This is because both companies operate in the same industry (mining and
resources) and produce similar products, which makes the merger horizontal in
nature.
Factors Considered for Evaluation of the Merger
1. Market Share and Concentration
The Competition Commission will evaluate the market shares of BHP and Anglo
American in the relevant markets. If the combined entity will hold a significant
market share, it may raise concerns about reduced competition.
Recommendation: Given both companies' extensive operations in overlapping markets,
the merger is likely to lead to a high market concentration in several commodities.
This could potentially reduce competition and create a monopoly or dominant
position in certain markets.
2. Potential for Anti-Competitive Effects
The merger may lead to anti-competitive outcomes such as:
• Increased Prices: The reduction in competition might enable the merged entity to
increase prices for their products.
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