Stocks Building Africa (Pty) Ltd v Housing Africa Development (Pty) Ltd (19/LM/Feb08) [2008] ZACT 24 (16 April 2008)

Stocks Building Africa (Pty) Ltd v Housing Africa Development (Pty) Ltd (19/LM/Feb08) [2008] ZACT 24 (16 April 2008)

The Tribunal found that the merger between Stocks Building Africa and Housing Africa Development would not result in a substantial lessening or prevention of competition in the residential construction market. The parties' combined market share post-merger would remain low, both nationally and in Gauteng, and there are several other competitors active in the market. The Tribunal accepted the Commission's view that residential construction is a distinct product market and that the merging parties operate in different segments within that market. No public interest concerns were identified, and the transaction was approved unconditionally.

Citation
[2008] ZACT 24
Parties
Applicant: Stocks Building Africa (Pty) Ltd; Respondent: Housing Africa Development (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 April 2008
Case Number
19/LM/Feb08
Procedural Posture
Merger Control / Merger Clearance
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, U Bhoola
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Share Analysis

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Parties

Stocks Building Africa (Pty) Ltd

Applicant

Housing Africa Development (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Stocks Building Africa (Pty) Ltd and Housing Africa Development (Pty) Ltd will substantially lessen or prevent competition in the residential construction market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the merger between Stocks Building Africa and Housing Africa Development would not result in a substantial lessening or prevention of competition in the residential construction market. The parties' combined market share post-merger would remain low, both nationally and in Gauteng, and there are several other competitors active in the market. The Tribunal accepted the Commission's view that residential construction is a distinct product market and that the merging parties operate in different segments within that market. No public interest concerns were identified, and the transaction was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Stocks Building Africa (Pty) Ltd and Housing Africa Development (Pty) Ltd is approved without conditions.