Sycom Property Fund v AECI Pension Fund (82/LM/Sep12) [2012] ZACT 90 (29 October 2012)

Sycom Property Fund v AECI Pension Fund (82/LM/Sep12) [2012] ZACT 90 (29 October 2012)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. Sycom already held a 40% share in the property and management company, and acquiring the remaining 60% would not alter the competitive dynamics due to sufficient alternative A-grade office space in the Woodmead node and surrounding areas. Market participants and customers confirmed the availability of alternatives and upcoming developments. The merging parties confirmed that there would be no adverse effect on employment, and no other public interest issues were identified. Accordingly, the Tribunal approved the merger without conditions.

Citation
[2012] ZACT 90
Parties
Applicant: Sycom Property Fund; Respondent: AECI Pension Fund
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 October 2012
Case Number
82/LM/Sep12
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved without conditions.
Judges
Andreas Wessels, Takalani Madima, Medi Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Substantial Prevention or Lessening of Competition
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Substantial Prevention or Lessening of Competition

Case Brief

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Parties

Sycom Property Fund

Applicant

AECI Pension Fund

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in any relevant market. Sycom already held a 40% share in the property and management company, and acquiring the remaining 60% would not alter the competitive dynamics due to sufficient alternative A-grade office space in the Woodmead node and surrounding areas. Market participants and customers confirmed the availability of alternatives and upcoming developments. The merging parties confirmed that there would be no adverse effect on employment, and no other public interest issues were identified. Accordingly, the Tribunal approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The proposed merger between Sycom Property Fund and AECI Pension Fund in respect of a 60% undivided share in Woodlands Office Park and its management company is approved without conditions.