Dipula Property Investment Trust and Outward Investments (Pty) Ltd (78/LM/Sep06) [2006] ZACT 95 (18 December 2006)

Dipula Property Investment Trust and Outward Investments (Pty) Ltd (78/LM/Sep06) [2006] ZACT 95 (18 December 2006)

The Tribunal found that there is no horizontal overlap in the activities of the merging parties, as the transaction involves the introduction of new entities into the property letting business and does not result in any change in market structure. The vertical integration resulting from Dijalo's involvement in property management and Dipula Trust's ownership and letting of properties does not raise competition concerns, given Dijalo's market share is less than 1% and there are other major competitors in the market. The transaction does not raise any public interest concerns. Accordingly, the merger is approved unconditionally.

Citation
[2006] ZACT 95
Parties
Applicant: Dipula Property Investment Trust; Respondent: Outward Investment (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 December 2006
Case Number
78/LM/Sep06
Procedural Posture
Merger Review / Decision on Unconditional Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Clearance, Vertical Integration, Property Management Services
Competition Law Commercial and Corporate Merger Clearance Vertical Integration Property Management Services

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Parties

Dipula Property Investment Trust

Applicant

Outward Investment (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Decision on Unconditional Approval

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial prevention or lessening of competition in the relevant markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap in the activities of the merging parties, as the transaction involves the introduction of new entities into the property letting business and does not result in any change in market structure. The vertical integration resulting from Dijalo's involvement in property management and Dipula Trust's ownership and letting of properties does not raise competition concerns, given Dijalo's market share is less than 1% and there are other major competitors in the market. The transaction does not raise any public interest concerns. Accordingly, the merger is approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Dipula Property Investment Trust and Outward Investment (Pty) Ltd is approved without conditions.