Emira Property Fund Limited v Pilot Investments 1 (Pty) Ltd in respect of a 50% undivided share in Buildings A, C, D, E and G1 known as Summit Place (LM119Aug15) [2015] ZACT 102 (30 November 2015)

Emira Property Fund Limited v Pilot Investments 1 (Pty) Ltd in respect of a 50% undivided share in Buildings A, C, D, E and G1 known as Summit Place (LM119Aug15) [2015] ZACT 102 (30 November 2015)

The Tribunal found that the proposed transaction results in a horizontal overlap in the market for rentable Grade A and P office property in the relevant Pretoria nodes. The Competition Commission's investigation established that the post-merger market shares of the parties would be less than 30%, with a market share accretion of less than 9%. Other competitors, such as Vukile Property Fund Limited, Growthpoint Properties Limited, and Redefine Properties, would continue to constrain the merged entity. There is also available space for leasing and new developments, providing alternatives to tenants. The Tribunal agreed with the Commission that the merger would not substantially prevent or...

Citation
[2015] ZACT 102
Parties
Applicant: Emira Property Fund Limited; Respondent: Pilot Peridot Investments 1 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 November 2015
Case Number
LM119Aug15
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved unconditionally.
Judges
Y Carrim, A Ndoni, M Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Share Analysis Public Interest

Case Brief

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Parties

Emira Property Fund Limited

Applicant

Pilot Peridot Investments 1 (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant office property market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impact.

Ratio Decidendi

The Tribunal found that the proposed transaction results in a horizontal overlap in the market for rentable Grade A and P office property in the relevant Pretoria nodes. The Competition Commission's investigation established that the post-merger market shares of the parties would be less than 30%, with a market share accretion of less than 9%. Other competitors, such as Vukile Property Fund Limited, Growthpoint Properties Limited, and Redefine Properties, would continue to constrain the merged entity. There is also available space for leasing and new developments, providing alternatives to tenants. The Tribunal agreed with the Commission that the merger would not substantially prevent or...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Emira Property Fund Limited and Pilot Peridot Investments 1 (Pty) Ltd in respect of a 50% undivided share in Summit Place is approved without conditions.