COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 63/LM/Jun07
In the matter between:
Acucap Properties Ltd Acquiring Firm
And
Atlas Properties Ltd Target Firm
Panel : D Lewis (Presiding Member), N Manoim (Tribunal
Member) and M Holden (Tribunal Member)
Heard on : 27 July 2007
Order issued on : 27 July 2007
Reasons issued on : 20 September 2007
Reasons for Decision
Approval
1]On 22 August 2007 , the Tribunal approved the merger between Acucap
Properties Ltd and Atlast Properties Ltd. The reasons follow below.
The Transaction
2]Acucap Properties Ltd (“Acucap”) is increasing its shareholding in Atlas
Properties Ltd (“Atlas”) from 34.99% to 100%.
3]Acucap is a property loan stock company listed on the JSE. Its largest
shareholders are Resillient Property Income Fund Ltd with 7.04%, Nedbank
Ltd with 5.44% and Thesele Group (Pty) Ltd with 8.26%.
4]Atlas is a property investment holding company listed on the JSE. Its largest
shareholders are Acucap with 34.99%, Blend Capital (Pty) Ltd with 14.05%
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and Stanlib with 9.6%.
Rationale for the transaction
5]The transaction will enable Acucap Properties to diversify its portfolio
geographically into Cape Town, as it is primarily represented in Gauteng. The
transaction will also minimise the merged entity’s exposure to risk.
The relevant market and the impact on competition
6]Both parties own property portfolios comprising industrial, office and retail
properties. However, the light industrial and retail properties owned by the
merging parties are not situated in the same geographical markets.
7]Within the office property market both Acucap and Atlas own grade A office
properties in the Illovo node. Post the transaction the merged entity’s market
share will be 9.3%. However, the merging parties compete with players such
as Growthpoint, Gensec, Old Mutual Properties Group, Tresso, Emira and
Zenprop in this market.
8]In light of the above we find that the transaction would not substantially
prevent or lessen competition the relevant markets.
CONCLUSION
9]There are no significant public interest issues and we accordingly approve
the transaction.
__________________ 20 September 2007
N Manoim Date
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D Lewis and M Holden concurring
Tribunal Researcher: R Badenhorst
For the merging parties: Vani Chetty Competition Law
For the Commission: L Madihlaba and Makgale Mohlala
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