The Transaction
[4]
In terms of the proposed transaction, Pangbourne intends to acquire from Friedshelf, Portion 118
of the Farm Vogelfontein No. 84. The rationale for Pangbourne is to improve the distribution of its property portfolio, and for the
shareholders of Friedshelf, the transaction will allow them to realize the value of their investment.
The Relevant Geographic Market
[5]
The Tribunal’s approach in defining the relevant geographic market in property mergers has
been on the basis of nodes in which different geographic areas that compete with each other are grouped, which vary for the different
types of properties, and should sufficiently be close to justify the conclusion that they should be treated as relevant geographic
markets.
[6]
An overlap in this merger exists in relation to light industrial properties in the Boksburg East
node. Pangbourne already owns various light industrial properties within a 5 kilometer radius of the Boksburg East node which includes;
PVC, Anderbolt 03, Anderbolt 04, Anderbolt 07 and Anderbolt 09. T & B Boksburg as mentioned above, is a light industrial property situated in the Boksburg East node.
Competition Evaluation
[7]
According to the market share estimates provided by the merging parties; pre-merger Pangbourne
has 2.90%, and T & B Boksburg has 2.06% market share. The market share accretion is 2.06%, resulting in a post merger market
share of 4.96% of light industrial property in the Boksburg East node. This is clearly insignificant to raise any competition concerns.
Conclusion
[8]
We are satisfied that the proposed transaction is unlikely to substantially prevent or lessen competition
in the property market generally, including light industrial property situated in the Boksburg East node. There are no significant
public interest concerns. Accordingly, the proposed transaction is unconditionally approved.
_______________
11 December 2007
D Lewis Date
Presiding Member
N Manoim and U Bhoola concur in the judgment of D Lewis
Tribunal Researcher: L Xaba
For the Merging Parties
: Edward Nathan Sonnenbergs
For the Commission
: M Mashaba
(Mergers and Acquisitions)
.RTF of original document