CCPC obtains commitments from Oaktree and Alanis to secure approval for joint control of Lioncor
September 12, 2018
The Competition and Consumer Protection Commission (CCPC) has cleared, subject to binding commitments, the proposed acquisition by Oaktree Capital Group LLC (Oaktree) of 50% of the issued share capital of Lioncor Developments Limited (Lioncor) from Alanis Capital Limited (Alanis). This will ultimately result in Oaktree and Alanis having joint control of Lioncor.
The CCPC’s primary role in reviewing mergers and acquisitions is to ensure that a proposed merger or acquisition does not substantially lessen competition in any market for goods or services in the State. Following notification of the proposed transaction on 22 May 2018, the CCPC undertook an in-depth investigation, including issuing requirements for further information to each of the parties involved.
Lioncor is a residential property development management company which is not currently trading. Post-transaction, Lioncor will provide residential property development management services including to third party landowners through property development management agreements. In the course of its investigation, the CCPC became concerned that the proposed joint venture could facilitate the exchange of confidential information between Oaktree and Alanis regarding certain market segments in which they are actual or potential competitors. Oaktree and Alanis took initial steps to prevent the exchange of commercially sensitive information between them by agreeing to amend their joint venture agreement. The CCPC was also concerned that following implementation of the proposed joint venture, Oaktree and Alanis could obtain confidential third party information through Lioncor. Competition law requires businesses to act independently and the sharing of confidential business information could potentially breach the law.
To address the CCPC’s concerns, both Oaktree and Alanis provided proposals to the CCPC as to how they would strengthen existing measures to prevent the exchange of confidential information about Lioncor’s customers with Oaktree and Alanis. The proposals included a commitment that any development management agreement, which Lioncor enters into with a third party customer, will contain a confidentiality provision.
The CCPC has concluded that these commitments are appropriate and effective in addressing the competition concerns identified. The commitments form part of the CCPC’s determination, to clear the Proposed Transaction, which makes them legally binding on the parties.
Oaktree Capital Group LLC is a global alternative and non-traditional investment management firm. Its investments in the State include operational retail assets, office developments assets, sites for residential development as well as other distressed assets.
Alanis Capital Limited is involved in property asset and development management. In the State, an Alanis group company currently carries out residential development management services for two development sites.
Lioncor Developments Limited is a residential property development management company that will provide development management services to companies that own residential development sites.
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