Old Mutual Properties (Pty) Ltd and Marriott Property Services (Pty) Ltd / Marriott Asset Management (Pty) Ltd / Marriott Corporate Services (Pty) Ltd / Marriott Unit Trust Management Company Limited (15/LM/Feb06) [2006] ZACT 37 (9 May 2006)

Old Mutual Properties (Pty) Ltd and Marriott Property Services (Pty) Ltd / Marriott Asset Management (Pty) Ltd / Marriott Corporate Services (Pty) Ltd / Marriott Unit Trust Management Company Limited (15/LM/Feb06) [2006] ZACT 37 (9 May 2006)

The Tribunal found that, based on the market share data provided, the merged entity would not hold a dominant position in any of the relevant markets. Customers in these markets have strong countervailing power and can switch service providers without significant cost, reducing the risk of anti-competitive effects. The Tribunal accepted the parties' market definitions and the Commission's analysis, concluding that the merger is unlikely to substantially prevent or lessen competition. No public interest concerns were identified. Accordingly, the merger was approved.

Citation
[2006] ZACT 37
Parties
Applicant: Old Mutual Properties (Pty) Ltd; Respondent: Marriott Property Services (Pty) Ltd; Respondent: Marriott Asset Management (Pty) Ltd; Respondent: Marriott Corporate Services (Pty) Ltd; Respondent: Marriott Unit Trust Management Company Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 May 2006
Case Number
15/LM/Feb06
Procedural Posture
Large Merger / Merger Clearance Decision
Outcome
Merger approved.
Judges
Y Carrim, M Moerane, L Reyburn
Legal Topics
Large Merger Review, Market Definition, Countervailing Power, Market Share Analysis, Public Interest
Competition Law Commercial and Corporate Large Merger Review Market Definition Countervailing Power Market Share Analysis Public Interest

Case Brief

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Parties

Old Mutual Properties (Pty) Ltd

Applicant

Marriott Property Services (Pty) Ltd

Respondent

Marriott Asset Management (Pty) Ltd

Respondent

Marriott Corporate Services (Pty) Ltd

Respondent

Marriott Unit Trust Management Company Limited

Respondent

Procedural Posture

Large Merger / Merger Clearance Decision

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that, based on the market share data provided, the merged entity would not hold a dominant position in any of the relevant markets. Customers in these markets have strong countervailing power and can switch service providers without significant cost, reducing the risk of anti-competitive effects. The Tribunal accepted the parties' market definitions and the Commission's analysis, concluding that the merger is unlikely to substantially prevent or lessen competition. No public interest concerns were identified. Accordingly, the merger was approved.

Court Disposition

Merger approved.

Orders

  • The transaction between Old Mutual Properties (Pty) Ltd and the Marriott target firms is approved.