ApexHi Properties Limited and Prima Property Trust (68/LM/Jul05) [2005] ZACT 80 (10 November 2005)

ApexHi Properties Limited and Prima Property Trust (68/LM/Jul05) [2005] ZACT 80 (10 November 2005)

The Tribunal found that, based on the available information, the combined entity resulting from the merger would not be a significant player in the overall property market. The market capitalisation and geographical breakdowns of the parties' portfolios did not reveal any nodes with sufficient market strength to raise competition concerns. Although the record lacked comprehensive market share data and did not adequately address control relationships, the Tribunal concluded that there was no basis to find anticompetitive effects or public interest issues. The merger was therefore approved.

Citation
[2005] ZACT 80
Parties
Applicant: ApexHi Properties Limited; Respondent: Prima Property Trust
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 November 2005
Case Number
68/LM/Jul05
Procedural Posture
Large Merger / Approval
Outcome
Merger approved without conditions.
Judges
L Reyburn, T Orleyn, M Mokuena
Legal Topics
Large Merger Notification, Market Share Assessment, Control Definition, Conflict of Interest, Public Interest, Property Sector Concentration
Commercial and Corporate Competition Law Large Merger Notification Market Share Assessment Control Definition Conflict of Interest Public Interest Property Sector Concentration

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Parties

ApexHi Properties Limited

Applicant

Prima Property Trust

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the merger between ApexHi Properties Limited and Prima Property Trust raises competition concerns in the relevant property markets.
  2. 2 Whether the parties have accurately disclosed control relationships as required by the Competition Act.
  3. 3 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that, based on the available information, the combined entity resulting from the merger would not be a significant player in the overall property market. The market capitalisation and geographical breakdowns of the parties' portfolios did not reveal any nodes with sufficient market strength to raise competition concerns. Although the record lacked comprehensive market share data and did not adequately address control relationships, the Tribunal concluded that there was no basis to find anticompetitive effects or public interest issues. The merger was therefore approved.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between ApexHi Properties Limited and Prima Property Trust is approved.