Momentum Property Investments (Pty) Ltd and Bonatla Property Holdings Limited (34/LM/Jul03) [2003] ZACT 50 (25 September 2003)

Parties

Procedural Posture

Large Merger / Merger Clearance Decision

Legal Issues

1. 1 Does the proposed merger between Momentum Property Investments (Pty) Ltd and Bonatla Property Holdings Limited result in a substantial lessening of competition in the relevant property markets?
2. 2 Are there any public interest considerations that would prevent approval of the merger?

Ratio Decidendi

The Tribunal found that the only significant overlap between the merging parties exists in the market for Grade B office blocks in Midrand and light industrial properties in certain geographic nodes. Although the merged entity would hold a significant market share in Midrand, competitive pressures from adjacent office nodes would mitigate any anti-competitive effects. For industrial properties, the combined market shares are low and the merged entity faces robust competition from other property funds. The Tribunal accepted the parties' and Commission's submissions that there would be no adverse impact on employment or other public interest considerations. Consequently, the merger is not...

Court Disposition

Merger unconditionally approved.

Orders

• The merger between Momentum Property Investments (Pty) Ltd and Bonatla Property Holdings Limited is unconditionally approved.
• No conditions are imposed on the approval of the merger.