Corob Trust: Palm Trust and Others Ltd v Longland Investments (Pty) Ltd and Another (016410) [2013] ZACT 57 (27 June 2013)

Corob Trust: Palm Trust and Others Ltd v Longland Investments (Pty) Ltd and Another (016410) [2013] ZACT 57 (27 June 2013)

The Tribunal found that the merger did not raise any competition or public interest concerns. The Commission failed to identify any specific competition issues in the commercial property market analyzed. The Tribunal held that imposing conditions on future changes in property usage was not justified, as there was no clear basis to treat such changes as a merger, nor was there evidence of increased market concentration. The transaction involved investment in new assets, which would increase supply rather than restrict competition. Accordingly, the merger was approved unconditionally.

Citation
[2013] ZACT 57
Parties
Applicant: Corob Trust: Palm Trust and Others Limited; Respondent: Longland Investments (Pty) Ltd; Respondent: Tangmere Investment Corporation (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 June 2013
Case Number
016410
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Mondo Mazwai
Legal Topics
Merger Notification, Property Development, Public Interest, Market Concentration
Competition Law Land and Property Merger Notification Property Development Public Interest Market Concentration

Case Brief

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Parties

Corob Trust: Palm Trust and Others Limited

Applicant

Longland Investments (Pty) Ltd

Respondent

Tangmere Investment Corporation (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger raises competition concerns in the relevant property market.
  2. 2 Whether conditions should be imposed on the approval of the merger regarding future property usage.
  3. 3 Whether the merger raises any significant public interest issues.

Ratio Decidendi

The Tribunal found that the merger did not raise any competition or public interest concerns. The Commission failed to identify any specific competition issues in the commercial property market analyzed. The Tribunal held that imposing conditions on future changes in property usage was not justified, as there was no clear basis to treat such changes as a merger, nor was there evidence of increased market concentration. The transaction involved investment in new assets, which would increase supply rather than restrict competition. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between the acquiring consortiums and Longland Investments (Pty) Ltd and Tangmere Investment Corporation (Pty) Ltd is approved without conditions.