Selcovest 23 (Pty) Ltd and Basfour 2776 (Pty) Ltd (27/LM/Apr04) [2004] ZACT 44 (21 June 2004)

Selcovest 23 (Pty) Ltd and Basfour 2776 (Pty) Ltd (27/LM/Apr04) [2004] ZACT 44 (21 June 2004)

The Tribunal found that the merger between Selcovest 23 (Pty) Ltd and Basfour 2776 (Pty) Ltd, resulting in the formation of Vukile Property Fund Limited, does not raise competition concerns. The combined market shares in all relevant product and geographic markets are well below the threshold that would trigger a substantial lessening of competition. The Tribunal accepted the Commission's approach to market definition, which segmented properties by grade and location, and agreed that no significant overlaps exist. Furthermore, there are no public interest factors that would warrant prohibition or conditions. Accordingly, the merger is approved unconditionally.

Citation
[2004] ZACT 44
Parties
Applicant: Selcovest 23 (Pty) Ltd; Respondent: Basfour 2776 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 June 2004
Case Number
27/LM/Apr04
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally; no substantial lessening of competition or public interest concerns identified.
Judges
N. Manoim, M. Holden, U. Bhoola
Legal Topics
Large Merger Review, Market Definition, Horizontal Overlap, Market Share Analysis, Public Interest, Unconditional Approval
Competition Law Commercial and Corporate Land and Property Large Merger Review Market Definition Horizontal Overlap Market Share Analysis Public Interest +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Selcovest 23 (Pty) Ltd

Applicant

Basfour 2776 (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Does the proposed merger between Selcovest 23 (Pty) Ltd and Basfour 2776 (Pty) Ltd substantially lessen competition in any relevant market?
  2. 2 Are there any public interest concerns that would prevent approval of the merger?
  3. 3 Is the delineation of product and geographic markets appropriate for assessing competitive impact?

Ratio Decidendi

The Tribunal found that the merger between Selcovest 23 (Pty) Ltd and Basfour 2776 (Pty) Ltd, resulting in the formation of Vukile Property Fund Limited, does not raise competition concerns. The combined market shares in all relevant product and geographic markets are well below the threshold that would trigger a substantial lessening of competition. The Tribunal accepted the Commission's approach to market definition, which segmented properties by grade and location, and agreed that no significant overlaps exist. Furthermore, there are no public interest factors that would warrant prohibition or conditions. Accordingly, the merger is approved unconditionally.

Court Disposition

Merger approved unconditionally; no substantial lessening of competition or public interest concerns identified.

Orders

  • The merger between Selcovest 23 (Pty) Ltd and Basfour 2776 (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the transaction.