ApexHi Properties Ltd and MICC Properties (Pty) Ltd (25/LM/Mar06) [2006] ZACT 48 (26 May 2006)

ApexHi Properties Ltd and MICC Properties (Pty) Ltd (25/LM/Mar06) [2006] ZACT 48 (26 May 2006)

The Tribunal found that in all relevant product and geographic markets—Grade B office space in Witbank and Welkom, retail space in Mkhuze, and light industrial space in Strijdompark—the combined post-merger market shares of the parties would remain low, ranging from 2.36% to 15%. The presence of numerous competitors in each market further mitigated any risk of substantial prevention or lessening of competition. The Tribunal also noted that no public interest concerns were raised by the transaction. Accordingly, the merger was approved unconditionally as it did not contravene the Competition Act.

Citation
[2006] ZACT 48
Parties
Applicant: ApexHi Properties Ltd; Respondent: MICC Properties (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 May 2006
Case Number
25/LM/Mar06
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, U Bhoola, M Holden
Legal Topics
Large Merger Review, Market Share Analysis, Public Interest, Property Investment, Office Space Market, Retail Space Market
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Public Interest Property Investment Office Space Market Retail Space Market

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Parties

ApexHi Properties Ltd

Applicant

MICC Properties (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant product and geographic markets.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that in all relevant product and geographic markets—Grade B office space in Witbank and Welkom, retail space in Mkhuze, and light industrial space in Strijdompark—the combined post-merger market shares of the parties would remain low, ranging from 2.36% to 15%. The presence of numerous competitors in each market further mitigated any risk of substantial prevention or lessening of competition. The Tribunal also noted that no public interest concerns were raised by the transaction. Accordingly, the merger was approved unconditionally as it did not contravene the Competition Act.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between ApexHi Properties Ltd and MICC Properties (Pty) Ltd is approved without conditions.