Pangbourne Properties (Pty) Ltd and Calulo Property Fund Ltd and Others (67/LM/Aug06) [2006] ZACT 83 (11 October 2006)

Pangbourne Properties (Pty) Ltd and Calulo Property Fund Ltd and Others (67/LM/Aug06) [2006] ZACT 83 (11 October 2006)

The Tribunal found that the combined post-merger market shares of the parties in the relevant office property nodes (Sunninghill, Bryanston, Bloemfontein) are low and do not raise competition concerns. There is sufficient competition from other property-owning companies in these nodes. There is no geographic overlap in light industrial properties. No public interest issues arise from the transaction. Accordingly, the merger is unlikely to result in a substantial lessening or prevention of competition and is approved unconditionally.

Citation
[2006] ZACT 83
Parties
Applicant: Pangbourne Properties (Pty) Ltd; Respondent: Calulo Property Fund Ltd; Respondent: Calulo Asset Management (Pty) Ltd; Respondent: Calulo Property Management (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 October 2006
Case Number
67/LM/AUG06
Procedural Posture
Merger Control / Tribunal Approval of Merger
Outcome
Merger approved unconditionally.
Judges
DH Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Office Property Market
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Office Property Market

Case Brief

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Parties

Pangbourne Properties (Pty) Ltd

Applicant

Calulo Property Fund Ltd

Respondent

Calulo Asset Management (Pty) Ltd

Respondent

Calulo Property Management (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Tribunal Approval of Merger

Legal Issues

  1. 1 Whether the proposed merger would result in a substantial lessening or prevention of competition in the relevant office property markets.
  2. 2 Whether any public interest concerns arise from the transaction.

Ratio Decidendi

The Tribunal found that the combined post-merger market shares of the parties in the relevant office property nodes (Sunninghill, Bryanston, Bloemfontein) are low and do not raise competition concerns. There is sufficient competition from other property-owning companies in these nodes. There is no geographic overlap in light industrial properties. No public interest issues arise from the transaction. Accordingly, the merger is unlikely to result in a substantial lessening or prevention of competition and is approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Pangbourne Properties (Pty) Ltd and Calulo Property Fund Ltd and Others is approved unconditionally.