Government Employees Pension Fund (represented by Public Investment Corporation Limited) and Denel (Pty) Ltd (42/LM/May06) [2006] ZACT 60 (13 July 2006)

Government Employees Pension Fund (represented by Public Investment Corporation Limited) and Denel (Pty) Ltd (42/LM/May06) [2006] ZACT 60 (13 July 2006)

The Tribunal found that the merger between the Government Employees Pension Fund (represented by PIC) and Denel (Pty) Ltd would not result in a substantial lessening or prevention of competition. The parties' combined market share in the relevant property markets is very small, and there is no significant overlap in either product or geographic markets. The properties involved are located in different regions, and the activities of the merging parties do not compete directly. The Tribunal accepted the Commission's market definitions and analysis, noting that even if the properties held by ACSA (indirectly controlled by PIC) were included, the combined market share would remain...

Citation
[2006] ZACT 60
Parties
Applicant: Government Employees Pension Fund represented by Public Investment Corporation Limited; Respondent: Denel (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 July 2006
Case Number
42/LM/May06
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger approved without conditions.
Judges
D Lewis, N Manoim, M Mokuena
Legal Topics
Large Merger Review, Market Definition, Property Portfolio Acquisition, Market Share Analysis, Public Interest, Merger Clearance
Competition Law Commercial and Corporate Land and Property Large Merger Review Market Definition Property Portfolio Acquisition Market Share Analysis Public Interest +1 more

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Parties

Government Employees Pension Fund represented by Public Investment Corporation Limited

Applicant

Denel (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger will substantially lessen or prevent competition in the relevant property markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the merger between the Government Employees Pension Fund (represented by PIC) and Denel (Pty) Ltd would not result in a substantial lessening or prevention of competition. The parties' combined market share in the relevant property markets is very small, and there is no significant overlap in either product or geographic markets. The properties involved are located in different regions, and the activities of the merging parties do not compete directly. The Tribunal accepted the Commission's market definitions and analysis, noting that even if the properties held by ACSA (indirectly controlled by PIC) were included, the combined market share would remain...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Government Employees Pension Fund (represented by Public Investment Corporation Limited) and Denel (Pty) Ltd is approved without conditions.