Acucap Properties Limited and Intaprop Investment (Pty) Ltd (95/LM/Sep07) [2007] ZACT 80 (29 October 2007)

Acucap Properties Limited and Intaprop Investment (Pty) Ltd (95/LM/Sep07) [2007] ZACT 80 (29 October 2007)

The Tribunal found that the combined market share of the merging parties in the market for rentable Grade A office space in the Sandton node would be 3.5% post-merger, which is considered low and unlikely to result in a substantial prevention or lessening of competition. The vertical integration resulting from the transaction was not deemed problematic, as the target firm does not provide property asset management or development services and only procures such services for internal use. No significant public interest concerns were identified. Accordingly, the Tribunal approved the merger without conditions.

Citation
[2007] ZACT 80
Parties
Applicant: Acucap Properties Limited; Respondent: Intaprop Investment (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 October 2007
Case Number
95/LM/Sep07
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved without conditions.
Judges
U Bhoola, Y Carrim, M Holden
Legal Topics
Merger Control, Horizontal Merger, Vertical Integration, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Merger Vertical Integration Market Share Analysis

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Parties

Acucap Properties Limited

Applicant

Intaprop Investment (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger between Acucap Properties Limited and Intaprop Investment (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the combined market share of the merging parties in the market for rentable Grade A office space in the Sandton node would be 3.5% post-merger, which is considered low and unlikely to result in a substantial prevention or lessening of competition. The vertical integration resulting from the transaction was not deemed problematic, as the target firm does not provide property asset management or development services and only procures such services for internal use. No significant public interest concerns were identified. Accordingly, the Tribunal approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Acucap Properties Limited and Intaprop Investment (Pty) Ltd is approved unconditionally.