Redefine Income Fund Ltd v Apexhi Properties Ltd and Another (40/LM/Apr09) [2009] ZACT 59; [2009] 2 CPLR 447 (CT) (30 September 2009)

Redefine Income Fund Ltd v Apexhi Properties Ltd and Another (40/LM/Apr09) [2009] ZACT 59; [2009] 2 CPLR 447 (CT) (30 September 2009)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. The combined entity's market shares in the broader and narrower property markets were relatively low, and effective competitors would remain post-merger. Barriers to entry, while high, were not...

Source-derived case information.

Citation
[2009] ZACT 59
Parties
Applicant: Redefine Income Fund Ltd; Respondent: Apexhi Properties Ltd; Respondent: Madison Property Fund Managers Holdings Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 September 2009
Case Number
40/LM/Apr09
Procedural Posture
Merger Clearance / Final Determination
Outcome
Merger unconditionally approved.
Judges
D Lewis, M Mokuena, N Manoim
Legal Topics
Merger Clearance, Horizontal and Vertical Overlap, Market Definition, Barriers to Entry, Asset Management Services
Competition Law Commercial and Corporate Merger Clearance Horizontal and Vertical Overlap Market Definition Barriers to Entry Asset Management Services

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Summary, issues, holding and outcome

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Parties

Redefine Income Fund Ltd

Applicant

Apexhi Properties Ltd

Respondent

Madison Property Fund Managers Holdings Ltd

Respondent

Procedural Posture

Merger Clearance / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Redefine Income Fund Ltd, Apexhi Properties Ltd, and Madison Property Fund Managers Holdings Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns under the Competition Act.
  3. 3 Whether the merger gives rise to horizontal or vertical foreclosure concerns.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. The combined entity's market shares in the broader and narrower property markets were relatively low, and effective competitors would remain post-merger. Barriers to entry, while high, were not prohibitive, and alternative suppliers of asset management services existed. The vertical integration resulting from the merger did not raise customer or input foreclosure concerns. No public interest issues were identified. Accordingly, the merger was unconditionally approved.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Redefine Income Fund Ltd, Apexhi Properties Ltd, and Madison Property Fund Managers Holdings Ltd is unconditionally approved.
  • No conditions are imposed on the approval of the merger.