Ellerine Bros (Pty) Ltd and Another v FHP Managers (Pty) Ltd (019430) [2014] ZACT 69 (31 October 2014)

Ellerine Bros (Pty) Ltd and Another v FHP Managers (Pty) Ltd (019430) [2014] ZACT 69 (31 October 2014)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant markets. The merging parties' combined post-merger market share in Grade A office properties in Sandton and Environs would remain low, and significant competition from other property groups would persist. The transaction would not alter the market structure for speciality entertainment centres, as there was no overlap in retail properties outside Newpark. No public interest concerns were identified. The Tribunal therefore approved the transaction unconditionally.

Citation
[2014] ZACT 69
Parties
Applicant: Ellerine Bros (Pty) Ltd; Applicant: Ellwain Investments (Pty) Ltd; Respondent: FHP Managers (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 October 2014
Case Number
019430
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Anton Roskam, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Property Investment
Competition Law Merger Control Horizontal Overlap Market Share Analysis Public Interest Property Investment

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Parties

Ellerine Bros (Pty) Ltd

Applicant

Ellwain Investments (Pty) Ltd

Applicant

FHP Managers (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant markets. The merging parties' combined post-merger market share in Grade A office properties in Sandton and Environs would remain low, and significant competition from other property groups would persist. The transaction would not alter the market structure for speciality entertainment centres, as there was no overlap in retail properties outside Newpark. No public interest concerns were identified. The Tribunal therefore approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The acquisition by Ellerine Bros (Pty) Ltd and Ellwain Investments (Pty) Ltd of FHP Managers (Pty) Ltd’s 25% interest in Newpark Towers (Pty) Ltd is approved unconditionally.