Realty Dynamix 73 (Pty) Ltd and Another and Seven Proparties of Assetz Property Investment Fund and Three Properties of Pangbourne Properties Ltd (77/LM/JUL07) [2007] ZACT 98 (10 December 2007)

Realty Dynamix 73 (Pty) Ltd and Another and Seven Proparties of Assetz Property Investment Fund and Three Properties of Pangbourne Properties Ltd (77/LM/JUL07) [2007] ZACT 98 (10 December 2007)

The Tribunal found that the proposed merger between Realty Dynamix 73 (Pty) Ltd, Pangbourne Properties Ltd, and the target properties would not substantially prevent or lessen competition in the relevant markets. The combined market shares for grade A office property in the Sandton, Bryanston/Epsom Downs, and Woodmead/Sunninghill/Paulshof nodes were all below 2%, indicating a lack of market power. There was no significant overlap in showroom properties, and no vertical integration effects arose from the transaction. The Tribunal accepted the parties' and Commission's submissions that Realty would remain a minor player among several large competitors. No public interest concerns were...

Citation
[2007] ZACT 98
Parties
Applicant: Realty Dynamix 73 (Pty) Ltd; Applicant: Pangbourne Properties Ltd; Respondent: Seven Properties of Assetz Property Investment Fund; Respondent: Three Properties of Pangbourne Properties Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 December 2007
Case Number
77/LM/JUL07
Procedural Posture
Merger Application / Merger Clearance Decision
Outcome
Merger approved unconditionally.
Judges
DH Lewis, N Manoim, Y Carrim
Legal Topics
Merger Clearance, Horizontal Effects, Market Definition, Grade a Office Property, Public Interest, Vertical Effects
Competition Law Commercial and Corporate Land and Property Merger Clearance Horizontal Effects Market Definition Grade a Office Property Public Interest +1 more

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Parties

Realty Dynamix 73 (Pty) Ltd

Applicant

Pangbourne Properties Ltd

Applicant

Seven Properties of Assetz Property Investment Fund

Respondent

Three Properties of Pangbourne Properties Ltd

Respondent

Procedural Posture

Merger Application / Merger Clearance Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether there are any public interest concerns arising from the transaction.
  3. 3 Whether the geographic and product market overlaps between the merging parties raise competition concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Realty Dynamix 73 (Pty) Ltd, Pangbourne Properties Ltd, and the target properties would not substantially prevent or lessen competition in the relevant markets. The combined market shares for grade A office property in the Sandton, Bryanston/Epsom Downs, and Woodmead/Sunninghill/Paulshof nodes were all below 2%, indicating a lack of market power. There was no significant overlap in showroom properties, and no vertical integration effects arose from the transaction. The Tribunal accepted the parties' and Commission's submissions that Realty would remain a minor player among several large competitors. No public interest concerns were...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Realty Dynamix 73 (Pty) Ltd, Pangbourne Properties Ltd, and the target properties is approved without conditions.