Redfine Properties Ltd v Zenprop Property Holdings (85/LM/SEP11) [2011] ZACT 102 (1 December 2011)

Redfine Properties Ltd v Zenprop Property Holdings (85/LM/SEP11) [2011] ZACT 102 (1 December 2011)

The Tribunal found that the post-merger market shares in the relevant product and geographic markets were low and that other large competitors remained active. The acquisition of the portfolio of properties was therefore unlikely to result in a substantial prevention or lessening of competition. Furthermore, the transaction did not raise any public interest concerns, including employment losses. Based on these findings and the recommendation of the Competition Commission, the Tribunal approved the merger unconditionally.

Citation
[2011] ZACT 102
Parties
Applicant: Redefine Properties Ltd; Respondent: Zenprop Property Holdings
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 December 2011
Case Number
85/LM/SEP11
Procedural Posture
Merger Control / Approval of Large Merger
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Merle Holden, Medi Mokuena
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Property Investment
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Property Investment

Case Brief

Summary, issues, holding and outcome

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Parties

Redefine Properties Ltd

Applicant

Zenprop Property Holdings

Respondent

Procedural Posture

Merger Control / Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed merger between Redefine Properties Ltd and Zenprop Property Holdings will substantially prevent or lessen competition in the relevant property letting markets.
  2. 2 Whether the transaction raises any public interest concerns, including employment losses.

Ratio Decidendi

The Tribunal found that the post-merger market shares in the relevant product and geographic markets were low and that other large competitors remained active. The acquisition of the portfolio of properties was therefore unlikely to result in a substantial prevention or lessening of competition. Furthermore, the transaction did not raise any public interest concerns, including employment losses. Based on these findings and the recommendation of the Competition Commission, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Redefine Properties Ltd and Zenprop Property Holdings in respect of a portfolio of property letting enterprises is approved unconditionally.