Government Employees Pension Fund v Trevenna Precinct Office Development (68/LM/Jun08) [2008] ZACT 74 (12 September 2008)

Government Employees Pension Fund v Trevenna Precinct Office Development (68/LM/Jun08) [2008] ZACT 74 (12 September 2008)

The Tribunal found that the combined market share of the merging parties in the relevant market for grade A office properties in Pretoria and surrounding nodes would be 7.8% post-merger. This market share is considered low and does not raise competition concerns. The Tribunal agreed with the Competition Commission's analysis that the transaction would not result in a substantial lessening or prevention of competition. Furthermore, no public interest issues were identified that would warrant prohibition or conditions. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 74
Parties
Applicant: Government Employees Pension Fund; Respondent: Trevenna Precinct Office Development
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 September 2008
Case Number
68/LM/Jun08
Procedural Posture
Merger Clearance / Decision on Unconditional Approval
Outcome
Merger approved unconditionally; no substantial lessening or prevention of competition found.
Judges
N Manoim, U Bhoola, Y Carrim
Legal Topics
Merger Clearance, Market Share Analysis, Public Interest, Office Property Market
Competition Law Commercial and Corporate Merger Clearance Market Share Analysis Public Interest Office Property Market

Case Brief

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Parties

Government Employees Pension Fund

Applicant

Trevenna Precinct Office Development

Respondent

Procedural Posture

Merger Clearance / Decision on Unconditional Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that the combined market share of the merging parties in the relevant market for grade A office properties in Pretoria and surrounding nodes would be 7.8% post-merger. This market share is considered low and does not raise competition concerns. The Tribunal agreed with the Competition Commission's analysis that the transaction would not result in a substantial lessening or prevention of competition. Furthermore, no public interest issues were identified that would warrant prohibition or conditions. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally; no substantial lessening or prevention of competition found.

Orders

  • The merger between Government Employees Pension Fund and Trevenna Precinct Office Development is approved unconditionally.
  • No conditions are imposed on the transaction.