Corvest Holdings (Pty) Ltd and Fidelity

The judgment

The court's own file

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 1 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) 2