Newpark Towers (Pty) Ltd v Ferox Investments (Pty) Ltd (28/LM/Jun10) [2010] ZACT 54 (24 August 2010)

Newpark Towers (Pty) Ltd v Ferox Investments (Pty) Ltd (28/LM/Jun10) [2010] ZACT 54 (24 August 2010)

The Tribunal found that the combined post-merger market share of the parties in the market for rentable A-grade office space in the Sandton node is approximately 4%, which is considered low. The market is characterised by the presence of numerous competitors, including Acucap, Growthpoint, Pangbourne, Sycom, SA Corporate, Redefine, and others. There are no public interest concerns arising from the transaction. Accordingly, the merger is unlikely to substantially prevent or lessen competition and does not raise any public interest issues. The Tribunal therefore approved the transaction unconditionally.

Citation
[2010] ZACT 54
Parties
Applicant: Newpark Towers (Pty) Ltd; Respondent: Ferox Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 August 2010
Case Number
28/LM/Jun10
Procedural Posture
Merger Review / Approval
Outcome
Merger unconditionally approved.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Property Investment
Competition Law Merger Control Market Share Analysis Public Interest Property Investment

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Parties

Newpark Towers (Pty) Ltd

Applicant

Ferox Investments (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the market for rentable A-grade office space in the Sandton node.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that the combined post-merger market share of the parties in the market for rentable A-grade office space in the Sandton node is approximately 4%, which is considered low. The market is characterised by the presence of numerous competitors, including Acucap, Growthpoint, Pangbourne, Sycom, SA Corporate, Redefine, and others. There are no public interest concerns arising from the transaction. Accordingly, the merger is unlikely to substantially prevent or lessen competition and does not raise any public interest issues. The Tribunal therefore approved the transaction unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The acquisition of the property letting enterprise known as 24 Central by Newpark Towers (Pty) Ltd from Ferox Investments (Pty) Ltd is unconditionally approved.