Acucap Properties Ltd v Parkdev (Pty) Ltd (79/LM/Jul08) [2008] ZACT 86 (6 October 2008)

Acucap Properties Ltd v Parkdev (Pty) Ltd (79/LM/Jul08) [2008] ZACT 86 (6 October 2008)

The Tribunal found that the acquisition by Acucap Properties Ltd of certain assets and shares in Sycom Fund from Parkdev (Pty) Ltd constituted a notifiable large merger due to the change from single to joint control over Sycom Fund. The Tribunal accepted the Commission's findings that the parties' activities overlapped only in certain Grade A office property markets, and that the merged entity's market shares in these markets (Sandton and Environs node: 4.78%, Bryanston node: 7.4%, Greater Woodmead node: 14.66%) were sufficiently low so as not to raise competition concerns. Furthermore, Acucap's provision of property and asset management services was limited to its own properties, and...

Citation
[2008] ZACT 86
Parties
Applicant: Acucap Properties Ltd; Respondent: Parkdev (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 October 2008
Case Number
79/LM/Jul08
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Large Merger Notification, Change of Control, Market Share Analysis, Property Management Services, Asset Management Services
Competition Law Commercial and Corporate Large Merger Notification Change of Control Market Share Analysis Property Management Services Asset Management Services

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Parties

Acucap Properties Ltd

Applicant

Parkdev (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition by Acucap Properties Ltd of assets and shares in Sycom Fund from Parkdev (Pty) Ltd triggers a notifiable large merger under competition law.
  2. 2 Whether the transaction will substantially prevent or lessen competition in the relevant Grade A office property markets.
  3. 3 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the acquisition by Acucap Properties Ltd of certain assets and shares in Sycom Fund from Parkdev (Pty) Ltd constituted a notifiable large merger due to the change from single to joint control over Sycom Fund. The Tribunal accepted the Commission's findings that the parties' activities overlapped only in certain Grade A office property markets, and that the merged entity's market shares in these markets (Sandton and Environs node: 4.78%, Bryanston node: 7.4%, Greater Woodmead node: 14.66%) were sufficiently low so as not to raise competition concerns. Furthermore, Acucap's provision of property and asset management services was limited to its own properties, and...

Court Disposition

Merger approved without conditions.

Orders

  • The acquisition by Acucap Properties Ltd of certain assets and shares in Sycom Fund from Parkdev (Pty) Ltd is approved.
  • No conditions are imposed on the approval of the merger.