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Gencor Limited v. Commission
European Union Court of Justice
1999 E.C.R. II-753 (1999)
Gencor Limited (Gencor) (defendant), a South African company, wanted to merge with Lonrho, another South African company. Both companies mined and refined platinum-group metals. South African regulators approved the horizontal merger, but the European Commission (commission) (plaintiff) opposed the merger, asserting that it would create a monopoly in the relevant platinum markets, impeding competition in Europe. Gencor appealed the commission’s finding to the European Union Court of Justice, challenging the commission’s jurisdiction over the merger because the merged firm was based in, and its main activities took place in, South Africa. The commission argued that Lonrho had a subsidiary in Europe through which it sold its mined products in addition to conducting other hotel and trading activities, giving rise to jurisdiction. In addition, both Gencor and Lonrho conducted millions of Euros worth of sales in Europe each year.
Rule of Law
Holding and Reasoning
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