Dipula Property Fund (Pty) Ltd v Asakhe Realty Investment (42/LM/May11) [2011] ZACT 46 (7 July 2011)

Dipula Property Fund (Pty) Ltd v Asakhe Realty Investment (42/LM/May11) [2011] ZACT 46 (7 July 2011)

The Tribunal found that the proposed transaction between Dipula Property Fund and Asakhe Realty Investment, including the related internal restructuring transactions, does not result in a substantial prevention or lessening of competition in any relevant market. The post-merger market shares in the affected product and geographic markets are too low to raise competition concerns. Furthermore, the transaction does not negatively impact employment or raise any other public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2011] ZACT 46
Parties
Applicant: Dipula Property Fund (Pty) Ltd; Respondent: Asakhe Realty Investment
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 July 2011
Case Number
42/LM/May11
Procedural Posture
Merger Control / Approval of Proposed Merger
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Merle Holden
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Property Investment, Sale Agreement
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Property Investment Sale Agreement

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Parties

Dipula Property Fund (Pty) Ltd

Applicant

Asakhe Realty Investment

Respondent

Procedural Posture

Merger Control / Approval of Proposed Merger

Legal Issues

  1. 1 Whether the proposed merger between Dipula Property Fund and Asakhe Realty Investment is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction between Dipula Property Fund and Asakhe Realty Investment, including the related internal restructuring transactions, does not result in a substantial prevention or lessening of competition in any relevant market. The post-merger market shares in the affected product and geographic markets are too low to raise competition concerns. Furthermore, the transaction does not negatively impact employment or raise any other public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.