Acucap Properties Ltd v Attfund Ltd (22/LM/May10) [2010] ZACT 53 (24 August 2010)

Acucap Properties Ltd v Attfund Ltd (22/LM/May10) [2010] ZACT 53 (24 August 2010)

The Tribunal found that the proposed acquisition would not result in a substantial lessening or prevention of competition in the relevant markets. The combined post-merger market shares for both rentable grade 'A' office space and asset management services were low, and the presence of strong competitors in these markets further reduced the likelihood of anti-competitive effects. The Tribunal accepted the parties' undertakings regarding the management of cross directorships, including the resignation of executive directors and recusal procedures for non-executive directors in the event of conflicts of interest. No significant public interest concerns were identified. Accordingly, the...

Citation
[2010] ZACT 53
Parties
Applicant: Acucap Properties Ltd; Respondent: Attfund Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 August 2010
Case Number
22/LM/May10
Procedural Posture
Merger Review / Approval
Outcome
The merger is unconditionally approved.
Judges
Norman Manoim, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Market Share Analysis, Vertical Relationships, Conflict of Interest, Public Interest, Property Management
Competition Law Commercial and Corporate Land and Property Merger Control Market Share Analysis Vertical Relationships Conflict of Interest Public Interest +1 more

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Parties

Acucap Properties Ltd

Applicant

Attfund Ltd

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition would result in a substantial lessening or prevention of competition in the relevant markets.
  2. 2 Whether the transaction would enhance coordination among competitors due to cross directorships.
  3. 3 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed acquisition would not result in a substantial lessening or prevention of competition in the relevant markets. The combined post-merger market shares for both rentable grade 'A' office space and asset management services were low, and the presence of strong competitors in these markets further reduced the likelihood of anti-competitive effects. The Tribunal accepted the parties' undertakings regarding the management of cross directorships, including the resignation of executive directors and recusal procedures for non-executive directors in the event of conflicts of interest. No significant public interest concerns were identified. Accordingly, the...

Court Disposition

The merger is unconditionally approved.

Orders

  • The acquisition by Acucap Properties Ltd of the entire issued share capital of Tyger Hills Office Investments (Pty) Ltd is approved without conditions.
  • No significant public interest issues arise from the transaction.