Acucap Properties Ltd v Parkdev (Pty) Ltd (21/LM/May10) [2010] ZACT 55 (24 August 2010)

Acucap Properties Ltd v Parkdev (Pty) Ltd (21/LM/May10) [2010] ZACT 55 (24 August 2010)

The Tribunal found that the overlap between the parties in asset management services was limited, with a combined post-merger market share of approximately 7%. The market is competitive, with several large firms active nationally. The vertical aspect of the transaction, whereby Acucap owns properties that could be managed by asset managers, does not raise foreclosure concerns as Acucap’s property value is only about 4% of the market. No significant public interest issues were identified. Accordingly, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition and approved the merger unconditionally.

Citation
[2010] ZACT 55
Parties
Applicant: Acucap Properties Ltd; Respondent: Parkdev (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 August 2010
Case Number
21/LM/May10
Procedural Posture
Merger Control / Approval
Outcome
Merger unconditionally approved.
Judges
Norman Manoim, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Asset Management Services, Market Share Analysis, Vertical Integration
Competition Law Commercial and Corporate Merger Control Asset Management Services Market Share Analysis Vertical Integration

Case Brief

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Parties

Acucap Properties Ltd

Applicant

Parkdev (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the national market for asset management services.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the overlap between the parties in asset management services was limited, with a combined post-merger market share of approximately 7%. The market is competitive, with several large firms active nationally. The vertical aspect of the transaction, whereby Acucap owns properties that could be managed by asset managers, does not raise foreclosure concerns as Acucap’s property value is only about 4% of the market. No significant public interest issues were identified. Accordingly, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition and approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The acquisition by Acucap Properties Ltd of the remaining 50% undivided share and issued share capital in Sycom Managers from Parkdev (Pty) Ltd is approved without conditions.