Mergence Africa Property Investment Trust and Another and 8 Property Letting Enterprises held by ApexHi Properties Limited and Another (130/LM/NOV07,131/LM/NOV 07) [2008] ZACT 14; [2008] 1 CPLR 121 (CT) (19 February 2008)

Mergence Africa Property Investment Trust and Another and 8 Property Letting Enterprises held by ApexHi Properties Limited and Another (130/LM/NOV07,131/LM/NOV 07) [2008] ZACT 14; [2008] 1 CPLR 121 (CT) (19 February 2008)

The Tribunal found that the simultaneous mergers involving Mergence and Dipula acquiring property portfolios from ApexHi Properties Limited did not result in any significant increase in market concentration or anticompetitive effects. The post-merger market shares in the relevant local markets were minimal, and there was no overlap between the properties transferred to Dipula and Mergence. Although Redefine was a shareholder in all the acquiring firms and had board representation, the Tribunal concluded that the relationships did not amount to market division or coordinated conduct that would substantially lessen competition. No public interest concerns were identified, and the...

Citation
[2008] ZACT 14
Parties
Applicant: Mergence Africa Property Investment Trust; Applicant: Dipula Property Investment Trust; Respondent: ApexHi Properties Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 February 2008
Case Number
130/LM/NOV07,131/LM/NOV 07
Procedural Posture
Large Merger Application / Merger Approval
Outcome
Both mergers are approved without conditions.
Judges
N Manoim, Y Carrim, U Bhoola
Legal Topics
Large Merger Notification, Market Concentration, Public Interest, Black Empowerment, Property Portfolio Divestiture
Competition Law Commercial and Corporate Large Merger Notification Market Concentration Public Interest Black Empowerment Property Portfolio Divestiture

Case Brief

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Parties

Mergence Africa Property Investment Trust

Applicant

Dipula Property Investment Trust

Applicant

ApexHi Properties Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Application / Merger Approval

Legal Issues

  1. 1 Whether the simultaneous mergers between Mergence Africa Property Investment Trust and Dipula Property Investment Trust with property portfolios held by ApexHi Properties Limited would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the structure and relationships among Redefine, ApexHi, Dipula, and Mergence raise concerns about market division or coordinated conduct.
  3. 3 Whether any public interest issues arise from the transactions.

Ratio Decidendi

The Tribunal found that the simultaneous mergers involving Mergence and Dipula acquiring property portfolios from ApexHi Properties Limited did not result in any significant increase in market concentration or anticompetitive effects. The post-merger market shares in the relevant local markets were minimal, and there was no overlap between the properties transferred to Dipula and Mergence. Although Redefine was a shareholder in all the acquiring firms and had board representation, the Tribunal concluded that the relationships did not amount to market division or coordinated conduct that would substantially lessen competition. No public interest concerns were identified, and the...

Court Disposition

Both mergers are approved without conditions.

Orders

  • The large merger between Mergence Africa Property Investment Trust and 38 Property Letting Enterprises held by ApexHi Properties Limited is approved without conditions.
  • The large merger between Dipula Property Investment Trust and 66 Property Letting Enterprises held by ApexHi Properties Limited is approved without conditions.