ABSA Bank Limited v Abseq Properties (Pty) Ltd and Others (118/LM/Nov08) [2008] ZACT 103 (3 December 2008)

ABSA Bank Limited v Abseq Properties (Pty) Ltd and Others (118/LM/Nov08) [2008] ZACT 103 (3 December 2008)

The Tribunal found that the only area of overlap between the parties is in respect of grade A office property in the Houghton node. However, since ABSA Bank already exercises joint control over Abseq and is merely acquiring sole control, there is no material change in market structure. There is no overlap between the properties owned by ABSA Bank and the Illovo Corner Property. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition. Furthermore, there are no public interest issues arising from the transaction. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 103
Parties
Applicant: ABSA Bank Limited; Respondent: Abseq Properties (Pty) Ltd; Respondent: Equity Estates (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 December 2008
Case Number
118/LM/Nov08
Procedural Posture
Merger Application / Merger Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Office Property Acquisition, Market Structure Analysis
Competition Law Commercial and Corporate Land and Property Merger Control Office Property Acquisition Market Structure Analysis

Case Brief

Summary, issues, holding and outcome

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Parties

ABSA Bank Limited

Applicant

Abseq Properties (Pty) Ltd

Respondent

Equity Estates (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between ABSA Bank Limited, Abseq Properties (Pty) Ltd, and Equity Estates (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the only area of overlap between the parties is in respect of grade A office property in the Houghton node. However, since ABSA Bank already exercises joint control over Abseq and is merely acquiring sole control, there is no material change in market structure. There is no overlap between the properties owned by ABSA Bank and the Illovo Corner Property. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition. Furthermore, there are no public interest issues arising from the transaction. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between ABSA Bank Limited, Abseq Properties (Pty) Ltd, and Equity Estates (Pty) Ltd is approved without conditions.