Redfine Properties Ltd v First National Bank Pension Fund (89/LM/Oct11) [2011] ZACT 105 (21 December 2011)

Redfine Properties Ltd v First National Bank Pension Fund (89/LM/Oct11) [2011] ZACT 105 (21 December 2011)

The Tribunal found that the proposed merger resulted in a horizontal overlap in the market for A-Grade office space in Sandton and environs. However, the combined post-merger market share of the parties would be less than 10%, which is insufficient to substantially prevent or lessen competition. The transaction would not have adverse effects on employment or other public interest considerations. Accordingly, the merger was approved without conditions.

Citation
[2011] ZACT 105
Parties
Applicant: Redefine Properties Ltd; Respondent: First National Bank Pension Fund
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 December 2011
Case Number
89/LM/Oct11
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
Andreas Wessels, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Market Share Analysis, Public Interest Considerations
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Considerations

Case Brief

Summary, issues, holding and outcome

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Parties

Redefine Properties Ltd

Applicant

First National Bank Pension Fund

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the market for A-Grade office space in Sandton and environs.
  2. 2 Whether the merger would have adverse effects on employment or other public interest considerations.

Ratio Decidendi

The Tribunal found that the proposed merger resulted in a horizontal overlap in the market for A-Grade office space in Sandton and environs. However, the combined post-merger market share of the parties would be less than 10%, which is insufficient to substantially prevent or lessen competition. The transaction would not have adverse effects on employment or other public interest considerations. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Redefine Properties Ltd and First National Bank Pension Fund in respect of the Letting Enterprise at 155 West Street Sandown, Sandton is approved without conditions.