Housing Solutions no. 39 (Pty) Ltd and Stock Buildings Africa (Pty) Ltd (78/LM/Dec03) [2004] ZACT 12 (9 February 2004)

Housing Solutions no. 39 (Pty) Ltd and Stock Buildings Africa (Pty) Ltd (78/LM/Dec03) [2004] ZACT 12 (9 February 2004)

The Tribunal found that the merger constituted a restructuring to facilitate black economic empowerment, with Leswikeng replacing Wiphold as the empowerment partner in Stocks Building Africa. There was no overlap in the products or services of the merging parties, as Leswikeng is an investment vehicle with no trading activities or interests in construction. Consequently, the merger would not substantially prevent or lessen competition in any relevant market. Furthermore, the transaction did not raise any significant public interest concerns. The merger was therefore approved.

Citation
[2004] ZACT 12
Parties
Applicant: Housing Solutions no. 39 (Pty) Ltd; Respondent: Stock Buildings Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 February 2004
Case Number
78/LM/Dec03
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, M Holden, P Maponya
Legal Topics
Large Merger Review, Black Economic Empowerment, Public Interest, Market Overlap
Competition Law Large Merger Review Black Economic Empowerment Public Interest Market Overlap

Case Brief

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Parties

Housing Solutions no. 39 (Pty) Ltd

Applicant

Stock Buildings Africa (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the merger between Housing Solutions no. 39 (Pty) Ltd and Stock Buildings Africa (Pty) Ltd will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the merger constituted a restructuring to facilitate black economic empowerment, with Leswikeng replacing Wiphold as the empowerment partner in Stocks Building Africa. There was no overlap in the products or services of the merging parties, as Leswikeng is an investment vehicle with no trading activities or interests in construction. Consequently, the merger would not substantially prevent or lessen competition in any relevant market. Furthermore, the transaction did not raise any significant public interest concerns. The merger was therefore approved.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Housing Solutions no. 39 (Pty) Ltd and Stock Buildings Africa (Pty) Ltd is approved.
  • No conditions are attached to the approval.