Pareto Ltd v Old Mutual Life Assurance Company (South Africa) Ltd (67/LM/Oct09) [2010] ZACT 6 (29 January 2010)

Pareto Ltd v Old Mutual Life Assurance Company (South Africa) Ltd (67/LM/Oct09) [2010] ZACT 6 (29 January 2010)

The Tribunal found that the properties owned by Pareto and its related entities are located outside the relevant geographic market radius for Menlyn Shopping Centre, and thus do not compete directly. In Cape Town, while there is some overlap, the merged entity's market share remains moderate and credible competition persists from other property owners. The transaction does not result in a substantial prevention or lessening of competition in either Gauteng or Cape Town. Furthermore, no public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2010] ZACT 6
Parties
Applicant: Pareto Limited; Respondent: Old Mutual Life Assurance Company (South Africa) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 January 2010
Case Number
67/LM/Oct09
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, A Wessels, A Ndoni
Legal Topics
Merger Control, Retail Property Market, Market Definition, Public Interest, Substantial Lessening of Competition
Competition Law Commercial and Corporate Land and Property Merger Control Retail Property Market Market Definition Public Interest Substantial Lessening of Competition

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Pareto Limited

Applicant

Old Mutual Life Assurance Company (South Africa) Limited

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Pareto Limited and Old Mutual Life Assurance Company (South Africa) Limited will 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 the properties owned by Pareto and its related entities are located outside the relevant geographic market radius for Menlyn Shopping Centre, and thus do not compete directly. In Cape Town, while there is some overlap, the merged entity's market share remains moderate and credible competition persists from other property owners. The transaction does not result in a substantial prevention or lessening of competition in either Gauteng or Cape Town. Furthermore, no public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Pareto Limited and Old Mutual Life Assurance Company (South Africa) Limited is approved without conditions.