Brodsky Investments (Pty) Ltd and Others v Murray and Roberts (Pty) Ltd (38/LM/Jul10) [2010] ZACT 51 (4 August 2010)
The Tribunal found that the overlaps in property ownership resulting from the merger were minor, with post-merger market shares remaining below thresholds that would raise competition concerns. Effective competition from other property owners would persist. The initial public interest concern regarding retrenchment of 20 employees was resolved when the acquiring firms undertook to employ all affected individuals. The merger was therefore unlikely to substantially prevent or lessen competition and did not raise any public interest concerns.
- Citation
- [2010] ZACT 51
- Parties
- Applicant: Brodsky Investments (Pty) Ltd; Applicant: Capital Property Fund Ltd; Applicant: Resilient Properties (Pty) Ltd; Applicant: Fortress Income 2 (Pty) Ltd; Respondent: Murray and Roberts (Pty) Ltd
- Court
- Competition Tribunal
- Jurisdiction
- South Africa
- Judgment Date
- 4 August 2010
- Case Number
- 38/LM/Jul10
- Procedural Posture
- Merger Notification / Tribunal Approval
- Outcome
- Merger unconditionally approved.
- Judges
- Norman Manoim, Yasmin Carrim, Andreas Wessels
- Legal Topics
- Merger Control, Market Share Analysis, Public Interest, Employment Effects
Case Brief
Summary, issues, holding and outcome
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Parties
Brodsky Investments (Pty) Ltd
Applicant
Capital Property Fund Ltd
Applicant
Resilient Properties (Pty) Ltd
Applicant
Fortress Income 2 (Pty) Ltd
Applicant
Murray and Roberts (Pty) Ltd
Respondent
Procedural Posture
Merger Notification / Tribunal Approval
Legal Issues
- 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant property markets.
- 2 Whether the merger raises any public interest concerns, particularly regarding employment.
Ratio Decidendi
The Tribunal found that the overlaps in property ownership resulting from the merger were minor, with post-merger market shares remaining below thresholds that would raise competition concerns. Effective competition from other property owners would persist. The initial public interest concern regarding retrenchment of 20 employees was resolved when the acquiring firms undertook to employ all affected individuals. The merger was therefore unlikely to substantially prevent or lessen competition and did not raise any public interest concerns.
Court Disposition
Merger unconditionally approved.
Orders
- The merger between the acquiring firms and Murray and Roberts (Pty) Ltd is approved without conditions.
- The acquiring firms are to employ all 20 affected employees on new employment contracts.
Full Case Text
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