Acucap Properties Ltd v Sycom Property Fund Collective Investment Scheme in Property, Represented by FirstRand Bank Ltd as Trustee (018168) [2014] ZACT 23 (27 February 2014)

Acucap Properties Ltd v Sycom Property Fund Collective Investment Scheme in Property, Represented by FirstRand Bank Ltd as Trustee (018168) [2014] ZACT 23 (27 February 2014)

The Tribunal found that although there was a horizontal overlap between Acucap and Sycom in the markets for rentable retail space and Grade A office space, the geographic separation of retail properties and the limited market share accretion rendered any competition concerns academic. In the identified office space nodes, post-merger market shares ranged between 4% and 10%, and Acucap already effectively controlled Sycom prior to the transaction. The Tribunal agreed with the Commission's assessment that the merger would not substantially prevent or lessen competition. Furthermore, the parties confirmed that there would be no adverse effect on employment or other public interest concerns....

Citation
[2014] ZACT 23
Parties
Applicant: Acucap Properties Ltd; Respondent: Sycom Property Fund Collective Investment Scheme in Property, Represented by FirstRand Bank Ltd as Trustee
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 February 2014
Case Number
018168
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Takalani Madima
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Collective Investment Schemes
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Share Analysis Public Interest Collective Investment Schemes

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Parties

Acucap Properties Ltd

Applicant

Sycom Property Fund Collective Investment Scheme in Property, Represented by FirstRand Bank Ltd as Trustee

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition of Sycom by Acucap will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that although there was a horizontal overlap between Acucap and Sycom in the markets for rentable retail space and Grade A office space, the geographic separation of retail properties and the limited market share accretion rendered any competition concerns academic. In the identified office space nodes, post-merger market shares ranged between 4% and 10%, and Acucap already effectively controlled Sycom prior to the transaction. The Tribunal agreed with the Commission's assessment that the merger would not substantially prevent or lessen competition. Furthermore, the parties confirmed that there would be no adverse effect on employment or other public interest concerns....

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The acquisition by Acucap Properties Ltd of Sycom Property Fund Collective Investment Scheme in Property is approved without conditions.