Attacq Property Fund Limited v Waterfall Property Development Company (Pty) Ltd (90/LM/Aug08) [2008] ZACT 93 (10 November 2008)

Attacq Property Fund Limited v Waterfall Property Development Company (Pty) Ltd (90/LM/Aug08) [2008] ZACT 93 (10 November 2008)

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition. The geographic markets for the relevant properties do not overlap, and the combined post-merger market share for regional shopping centres within a 40km radius from Midrand is 14.1%, which is not considered anti-competitive. Vertical integration arising from the transaction does not raise foreclosure concerns due to the presence of multiple competing property developers. No public interest issues were identified. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 93
Parties
Applicant: Attacq Property Fund Limited; Respondent: Waterfall Property Development Company (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 November 2008
Case Number
90/LM/Aug08
Procedural Posture
Merger Control / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, M Mokuena
Legal Topics
Merger Control, Vertical Integration, Market Share Analysis, Property Development Rights
Competition Law Commercial and Corporate Merger Control Vertical Integration Market Share Analysis Property Development Rights

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Attacq Property Fund Limited

Applicant

Waterfall Property Development Company (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between Attacq Property Fund Limited and Waterfall Property Development Company (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns.
  3. 3 Whether the vertical integration resulting from the transaction will give rise to foreclosure concerns.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition. The geographic markets for the relevant properties do not overlap, and the combined post-merger market share for regional shopping centres within a 40km radius from Midrand is 14.1%, which is not considered anti-competitive. Vertical integration arising from the transaction does not raise foreclosure concerns due to the presence of multiple competing property developers. No public interest issues were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Attacq Property Fund Limited and Waterfall Property Development Company (Pty) Ltd is approved without conditions.