Growthpoint Properties Limited and Paramount Fund Limited (94/LM/Nov06) [2007] ZACT 8 (19 January 2007)

Growthpoint Properties Limited and Paramount Fund Limited (94/LM/Nov06) [2007] ZACT 8 (19 January 2007)

The Tribunal found that the combined market shares of Growthpoint and Paramount in all relevant property letting markets were below the threshold that would raise competition concerns. The Commission's analysis, though incomplete regarding Redefine Income Fund, was supplemented by undertakings from the merging parties to notify the Commission of any significant shareholdings or board appointments involving Redefine. The Tribunal was satisfied that these undertakings adequately addressed the risk of coordinated effects and that there were no public interest issues. Accordingly, the merger was approved without conditions.

Citation
[2007] ZACT 8
Parties
Applicant: Growthpoint Properties Limited; Respondent: Paramount Property Fund Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 January 2007
Case Number
94/LM/Nov06
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Market Concentration, Coordinated Effects
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Concentration Coordinated Effects

Case Brief

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Parties

Growthpoint Properties Limited

Applicant

Paramount Property Fund Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Growthpoint Properties Limited and Paramount Property Fund Limited is likely to substantially prevent or lessen competition in the relevant property markets.
  2. 2 Whether the transaction raises any public interest concerns.
  3. 3 Whether Redefine Income Fund's shareholding in Paramount creates a risk of coordinated effects post-merger.

Ratio Decidendi

The Tribunal found that the combined market shares of Growthpoint and Paramount in all relevant property letting markets were below the threshold that would raise competition concerns. The Commission's analysis, though incomplete regarding Redefine Income Fund, was supplemented by undertakings from the merging parties to notify the Commission of any significant shareholdings or board appointments involving Redefine. The Tribunal was satisfied that these undertakings adequately addressed the risk of coordinated effects and that there were no public interest issues. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Growthpoint Properties Limited and Paramount Property Fund Limited is approved without conditions.
  • The merging parties must notify the Competition Commission of the identities and shareholdings of all Paramount shareholders holding more than 5% at the expiry of the offer period.