Capital Property Fund Ltd v Monyetla Property Fund Ltd (114/LM/Oct08) [2009] ZACT 5 (22 January 2009)

Capital Property Fund Ltd v Monyetla Property Fund Ltd (114/LM/Oct08) [2009] ZACT 5 (22 January 2009)

The Tribunal found that the combined market shares of Capital and Monyetla in both the Florida/Robertville/Maraisburg Node (11% for light industrial property) and the Sunninghill Node (10% for grade A office space) were not significant enough to raise competition concerns. The presence of several other competitors in both geographic markets further mitigated any potential anti-competitive effects. The Tribunal also determined that the transaction did not raise any significant public interest concerns. Accordingly, the acquisition was approved as it was unlikely to substantially prevent or lessen competition.

Citation
[2009] ZACT 5
Parties
Applicant: Capital Property Fund Ltd; Respondent: Monyetla Property Fund Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 January 2009
Case Number
114/LM/Oct08
Procedural Posture
Merger Control / Tribunal Approval of Merger
Outcome
Merger approved; acquisition permitted.
Judges
D Lewis, Y Carrim, T Orleyn
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Property Funds
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Property Funds

Case Brief

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Parties

Capital Property Fund Ltd

Applicant

Monyetla Property Fund Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval of Merger

Legal Issues

  1. 1 Whether the proposed acquisition of Monyetla Property Fund Ltd by Capital Property Fund Ltd will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the combined market shares of Capital and Monyetla in both the Florida/Robertville/Maraisburg Node (11% for light industrial property) and the Sunninghill Node (10% for grade A office space) were not significant enough to raise competition concerns. The presence of several other competitors in both geographic markets further mitigated any potential anti-competitive effects. The Tribunal also determined that the transaction did not raise any significant public interest concerns. Accordingly, the acquisition was approved as it was unlikely to substantially prevent or lessen competition.

Court Disposition

Merger approved; acquisition permitted.

Orders

  • The acquisition by Capital Property Fund Ltd of the entire issued share capital in Monyetla Property Fund Ltd is approved.
  • No conditions are imposed on the approval of the merger.