Nedbank Ltd v Emergent Investments (Pty) Ltd (106/LM/Dec11) [2012] ZACT 25 (16 April 2012)

Nedbank Ltd v Emergent Investments (Pty) Ltd (106/LM/Dec11) [2012] ZACT 25 (16 April 2012)

The Tribunal found that the combined post-merger market share of the parties in the relevant Grade B office market in Berea was below 20%, with many other competitors present. In the Pinetown warehouse market, although the combined market share was high, significant competition remained from other property funds. Customers did not view the properties as substitutable and raised no objections. The transaction did not affect employment or raise other public interest concerns. Therefore, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition and did not raise public interest issues, warranting unconditional approval.

Citation
[2012] ZACT 25
Parties
Applicant: Nedbank Ltd; Respondent: Emergent Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 April 2012
Case Number
106/LM/Dec11
Procedural Posture
Merger Control / Tribunal Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Merle Holden
Legal Topics
Merger Notification, Market Share Analysis, Public Interest, Property Investment, Competition Impact
Competition Law Commercial and Corporate Merger Notification Market Share Analysis Public Interest Property Investment Competition Impact

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Parties

Nedbank Ltd

Applicant

Emergent Investments (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval

Legal Issues

  1. 1 Whether the acquisition by Nedbank Ltd of Emergent Investments (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the combined post-merger market share of the parties in the relevant Grade B office market in Berea was below 20%, with many other competitors present. In the Pinetown warehouse market, although the combined market share was high, significant competition remained from other property funds. Customers did not view the properties as substitutable and raised no objections. The transaction did not affect employment or raise other public interest concerns. Therefore, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition and did not raise public interest issues, warranting unconditional approval.

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Nedbank Ltd of Emergent Investments (Pty) Ltd is approved without conditions.