SA Corporate Real Estate Trust Scheme v Old Mutual Life Assurance Company (“South Africa”) Ltd (12/LM/Mar10) [2010] ZACT 30 (4 May 2010)

SA Corporate Real Estate Trust Scheme v Old Mutual Life Assurance Company (“South Africa”) Ltd (12/LM/Mar10) [2010] ZACT 30 (4 May 2010)

The Tribunal found that the acquisition would increase the acquiring group's market share in the relevant market from 6% to 11%, which remains low. The change in market concentration, as measured by the Herfindahl-Hirschman Index, was only 60 points, indicating a minimal impact. The long-term tenant expressed no concerns, and there was no evidence of public interest issues. Therefore, the transaction is unlikely to substantially prevent or lessen competition in the relevant market, and approval was granted.

Citation
[2010] ZACT 30
Parties
Applicant: SA Corporate Real Estate Trust Scheme; Respondent: Old Mutual Life Assurance Company (“South Africa”) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 May 2010
Case Number
12/LM/Mar10
Procedural Posture
Merger Control / Approval
Outcome
Merger approved; transaction does not substantially prevent or lessen competition.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Market Definition, Herfindahl Hirschman Index, Public Interest, Property Investment
Competition Law Merger Control Market Definition Herfindahl Hirschman Index Public Interest Property Investment

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Parties

SA Corporate Real Estate Trust Scheme

Applicant

Old Mutual Life Assurance Company (“South Africa”) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of Supply Chain by SA Corporate Real Estate Trust Scheme will substantially prevent or lessen competition in the market for rentable light industrial space in the Jet Park node, Gauteng Province.
  2. 2 Whether any significant public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the acquisition would increase the acquiring group's market share in the relevant market from 6% to 11%, which remains low. The change in market concentration, as measured by the Herfindahl-Hirschman Index, was only 60 points, indicating a minimal impact. The long-term tenant expressed no concerns, and there was no evidence of public interest issues. Therefore, the transaction is unlikely to substantially prevent or lessen competition in the relevant market, and approval was granted.

Court Disposition

Merger approved; transaction does not substantially prevent or lessen competition.

Orders

  • The acquisition of Supply Chain by SA Corporate Real Estate Trust Scheme is approved.