ApexHi Properties Ltd and 15 Properties from the Toda Family (57/LM/Jun07) [2007] ZACT 49 (20 July 2007)

ApexHi Properties Ltd and 15 Properties from the Toda Family (57/LM/Jun07) [2007] ZACT 49 (20 July 2007)

The Tribunal found that there was no overlap between the activities of ApexHi and the target firms, as ApexHi did not own any residential properties in Johannesburg or South Africa prior to the transaction. The properties acquired represent only a 6% market share in the Johannesburg CBD residential property market, which is not significant enough to raise competition concerns. Furthermore, no substantial public interest issues were identified. Accordingly, the merger would not substantially prevent or lessen competition in the relevant market, nor would it negatively affect the public interest.

Citation
[2007] ZACT 49
Parties
Applicant: ApexHi Properties Ltd; Respondent: 15 Properties from the Toda Family
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 July 2007
Case Number
57/LM/Jun07
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved without conditions.
Judges
N Manoim, L Reyburn, M Mokuena
Legal Topics
Merger Control, Residential Property Market, Market Share Assessment
Competition Law Commercial and Corporate Land and Property Merger Control Residential Property Market Market Share Assessment

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Parties

ApexHi Properties Ltd

Applicant

15 Properties from the Toda Family

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed acquisition of 15 residential properties by ApexHi Properties Ltd from the Toda family would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that there was no overlap between the activities of ApexHi and the target firms, as ApexHi did not own any residential properties in Johannesburg or South Africa prior to the transaction. The properties acquired represent only a 6% market share in the Johannesburg CBD residential property market, which is not significant enough to raise competition concerns. Furthermore, no substantial public interest issues were identified. Accordingly, the merger would not substantially prevent or lessen competition in the relevant market, nor would it negatively affect the public interest.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between ApexHi Properties Ltd and 15 properties from the Toda family is approved unconditionally.