Corvest Holdings (Pty) Ltd & Others and Fidelity Services Group Ltd and Another (11/LM/Jan07) [2007] ZACT 63 (12 September 2007)

Corvest Holdings (Pty) Ltd & Others and Fidelity Services Group Ltd and Another (11/LM/Jan07) [2007] ZACT 63 (12 September 2007)

The Tribunal found that the overlap in the office property market resulting from the merger was negligible, with the merged entity's market share estimated at approximately 5%. The properties involved are specialised high-security and office properties, and the merged entity would not have sufficient market power to affect competition adversely. Furthermore, no significant public interest issues were identified. Accordingly, the Tribunal concluded that the transaction would not substantially prevent or lessen competition in any relevant market and that there were no grounds to impose conditions or prohibit the merger.

Citation
[2007] ZACT 63
Parties
Applicant: Corvest Holdings (Pty) Ltd; Applicant: The Dickerson Family Trust; Applicant: Dickerson Investments (Pty) Ltd; Applicant: FirstRand Ltd; Respondent: Fidelity Services Group Ltd; Respondent: Fidelity Services Group Properties (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 September 2007
Case Number
11/LM/Jan07
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, M Holden, M Mokuena
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Office Property Market
Competition Law Land and Property Merger Control Market Share Analysis Public Interest Office Property Market

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 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Corvest Holdings (Pty) Ltd

Applicant

The Dickerson Family Trust

Applicant

Dickerson Investments (Pty) Ltd

Applicant

FirstRand Ltd

Applicant

Fidelity Services Group Ltd

Respondent

Fidelity Services Group Properties (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant office property markets.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the overlap in the office property market resulting from the merger was negligible, with the merged entity's market share estimated at approximately 5%. The properties involved are specialised high-security and office properties, and the merged entity would not have sufficient market power to affect competition adversely. Furthermore, no significant public interest issues were identified. Accordingly, the Tribunal concluded that the transaction would not substantially prevent or lessen competition in any relevant market and that there were no grounds to impose conditions or prohibit the merger.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Corvest Holdings (Pty) Ltd, The Dickerson Family Trust, Dickerson Investments (Pty) Ltd, FirstRand Ltd and Fidelity Services Group Ltd and Fidelity Services Group Properties (Pty) Ltd is approved unconditionally.