Redfine Properties Ltd v Bakford Properties (Pty) Ltd and Another (79/LM/Dec10) [2011] ZACT 6 (10 February 2011)

Redfine Properties Ltd v Bakford Properties (Pty) Ltd and Another (79/LM/Dec10) [2011] ZACT 6 (10 February 2011)

The Tribunal found that the combined market share of the merged entity for A-grade office space in Sandton and environs would be a low 4.48%. Even within this narrowly defined market, the merged entity would continue to face competition from several effective competitors, such as Growthpoint, Liberty, Standard Bank Properties, and Investec Properties. There were no significant public interest concerns identified. Accordingly, the Tribunal concluded that the transaction would not substantially prevent or lessen competition in the relevant market and approved the merger.

Citation
[2011] ZACT 6
Parties
Applicant: Redfine Properties Limited; Respondent: Bakford Properties (Pty) Ltd; Respondent: Fedhurst Properties (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 February 2011
Case Number
79/LM/Dec10
Procedural Posture
Merger Control / Approval
Outcome
The merger is approved without conditions.
Judges
Norman Manoim, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Office Space Investment
Competition Law Commercial and Corporate Land and Property Merger Control Market Definition Public Interest Office Space Investment

Case Brief

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Parties

Redfine Properties Limited

Applicant

Bakford Properties (Pty) Ltd

Respondent

Fedhurst Properties (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the market for A-grade office space in Sandton and environs.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the combined market share of the merged entity for A-grade office space in Sandton and environs would be a low 4.48%. Even within this narrowly defined market, the merged entity would continue to face competition from several effective competitors, such as Growthpoint, Liberty, Standard Bank Properties, and Investec Properties. There were no significant public interest concerns identified. Accordingly, the Tribunal concluded that the transaction would not substantially prevent or lessen competition in the relevant market and approved the merger.

Court Disposition

The merger is approved without conditions.

Orders

  • The acquisition by Redfine Properties Limited of Bakford Properties (Pty) Ltd and Fedhurst Properties (Pty) Ltd in respect of Commerce Square and Esher Place is approved.
  • No conditions are imposed on the approval of the merger.