COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 11/LM/Jan07
In the matter between:
Corvest Holdings (Pty )Ltd and 3 Others Acquiring Firm
And
Fidelity Services Group Ltd and Another Target Firm
Panel : N Manoim (Presiding Member), M Holden (Tribunal
Member) and M Mokuena (Tribunal Member)
Heard on : 14 March 2007
Order issued on : 14 March 2007
Reasons issued on : 12 September 2007
Reasons for Decision
APPROVAL
1]On 14 March 2007 the Tribunal approved the merger between Corvest
Holdings (Pty) Ltd, The Dickerson Family Trust, Dickerson Investments (Pty)
Ltd, FirstRand Ltd and Fidelity Services Group Ltd and Fidelity Services
Group Properties (Pty) Ltd (“FSG”). The reasons follow.
THE TRANSACTION
1]This is a transaction where a consortium, lead by FirstRand Ltd, is acquiring
the properties owned by Fidelity Services Group Properties (Pty) Ltd a
subsidiary of Fidelity Services Group. The consortium consists of Corvest
Holdings (Pty) Ltd (“Corvest”), a member of the FirstRand Group, The
Dickerson Family Trust (“DFT”), Dickerson Investments (Pty) Ltd and
FirstRand Ltd.
2]Post the transaction FSG will be liquidated and Corvest and TDFT will each
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hold 50% of the shares in Propco.
Impact on Competition
3]The target firm owns specialised high security properties built to store cash
as well as a number of office properties. FirstRand controls various properties
country wide. There is an overlap in the office property market. However,
Propco only owns four office properties that are currently occupied by FSG
exclusively and estimates its market share to be less than 1% in each of the
office property markets concerned. The merged entity’s combined market
share in the office property market will be approximately 5%.
4]We therefore find that the transaction will not prevent or lessen competition in
any of the relevant markets.
CONCLUSION
5]There are no significant public interest issues and we accordingly approve
the transaction without conditions.
____________________ 12 September 2007
N Manoim Date
M Holden and M Mokuena concurring.
For the merging parties: Cliffe Dekker
For the Commission: E Ramohlola (Mergers & Acquisitions)
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