Tribunal to hear Sycom property merger

The Competition Tribunal will on Wednesday consider the proposed large merger between Sycom Property Fund Collective Investment Scheme in Property and Grapnel Property Investments (Pty) Ltd and Changing Tides 91 (Pty) Ltd, it said on Monday.

Sycom, the acquiring firm in this merger, is a close-end property unit trust which invests in rental property in the retail and office space sector in Gauteng and the Western Cape.

Grapnel, on the other hand, is a property fund management, development and investment company. It has currently invested in rentable retail space located in the Western Cape and office space located in Woodmead, Gauteng, namely the Cadbury Office Block.

In terms of the transaction, Sycom intends to acquire control of the Cadbury Office Block from Grapnel as well as a share of the rentable retail space located in the Western Cape. Should the deal be approved, Sycom will solely control Paarl Mall in the Western Cape and the Cadbury Office Block in Gauteng.

The Competition Commission assessed this transaction and concluded that the merger is unlikely to cause a significant lessening of competition.

The commission has therefore recommended that the Competition Tribunal approve the deal without conditions, the tribunal noted.