Vukile Property Fund Limited and MICC Property Income Fund Limited (76/LM/Oct04) [2005] ZACT 2 (10 January 2005)

Vukile Property Fund Limited and MICC Property Income Fund Limited (76/LM/Oct04) [2005] ZACT 2 (10 January 2005)

The Tribunal found that the merger between Vukile Property Fund Limited and MICC Property Income Fund Limited would not result in a substantial lessening of competition in any of the relevant product or geographic markets. The combined market shares in most segments were below 15%, and in those where shares marginally exceeded 15%, the presence of multiple competitors ensured continued competition. No significant public interest concerns were identified. The Tribunal agreed with the Commission's recommendation and approved the merger unconditionally.

Citation
[2005] ZACT 2
Parties
Applicant: Vukile Property Fund Limited; Respondent: MICC Property Income Fund Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 January 2005
Case Number
76/LM/Oct04
Procedural Posture
Large Merger Approval / Merger Clearance Decision
Outcome
Merger unconditionally approved.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Large Merger Review, Market Definition, Market Share Analysis, Public Interest, Unconditional Approval
Competition Law Commercial and Corporate Large Merger Review Market Definition Market Share Analysis Public Interest Unconditional Approval

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Parties

Vukile Property Fund Limited

Applicant

MICC Property Income Fund Limited

Respondent

Procedural Posture

Large Merger Approval / Merger Clearance Decision

Legal Issues

  1. 1 Does the proposed merger between Vukile Property Fund Limited and MICC Property Income Fund Limited substantially lessen competition in any relevant market?
  2. 2 Are there any significant public interest concerns arising from the merger?
  3. 3 Is unconditional approval of the merger appropriate given the market shares and competitive dynamics?

Ratio Decidendi

The Tribunal found that the merger between Vukile Property Fund Limited and MICC Property Income Fund Limited would not result in a substantial lessening of competition in any of the relevant product or geographic markets. The combined market shares in most segments were below 15%, and in those where shares marginally exceeded 15%, the presence of multiple competitors ensured continued competition. No significant public interest concerns were identified. The Tribunal agreed with the Commission's recommendation and approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Vukile Property Fund Limited and MICC Property Income Fund Limited is approved without conditions.