Scarlet Sky Investments 36 (Pty) Ltd v Meletse Big Five Reserve and Golf Estate Development (112/LM/Oct08) [2008] ZACT 100 (27 November 2008)

Scarlet Sky Investments 36 (Pty) Ltd v Meletse Big Five Reserve and Golf Estate Development (112/LM/Oct08) [2008] ZACT 100 (27 November 2008)

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in any market. The acquiring firm is not active in residential property development in Limpopo, and the vertical integration does not foreclose competitors, as other developers are present. There are...

Source-derived case information.

Citation
[2008] ZACT 100
Parties
Applicant: Scarlet Sky Investments 36 (Pty) Ltd; Respondent: Meletse Big Five Reserve and Golf Estate Development
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 November 2008
Case Number
112/LM/Oct08
Procedural Posture
Merger Clearance / Decision on Unconditional Approval
Outcome
Merger unconditionally approved.
Judges
N Manoim, Y Carrim, M Moerane
Legal Topics
Merger Clearance, Vertical Integration, Residential Property Development
Competition Law Commercial and Corporate Land and Property Merger Clearance Vertical Integration Residential Property Development

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Parties

Scarlet Sky Investments 36 (Pty) Ltd

Applicant

Meletse Big Five Reserve and Golf Estate Development

Respondent

Procedural Posture

Merger Clearance / Decision on Unconditional Approval

Legal Issues

  1. 1 Whether the proposed merger between Scarlet Sky Investments 36 (Pty) Ltd and Meletse Big Five Reserve and Golf Estate Development is likely to substantially prevent or lessen competition in any market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in a substantial prevention or lessening of competition in any market. The acquiring firm is not active in residential property development in Limpopo, and the vertical integration does not foreclose competitors, as other developers are present. There are no public interest concerns identified. Accordingly, the merger was unconditionally approved.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Scarlet Sky Investments 36 (Pty) Ltd and Meletse Big Five Reserve and Golf Estate Development is unconditionally approved.
  • No conditions are imposed on the transaction.