AFHCO Holding (Pty) Ltd v Morulat Property Investments 4 (Pty) Ltd (020115) [2015] ZACT 3 (14 January 2015)

AFHCO Holding (Pty) Ltd v Morulat Property Investments 4 (Pty) Ltd (020115) [2015] ZACT 3 (14 January 2015)

The Tribunal found that the proposed transaction results in a horizontal overlap in the market for residential property and retail space in the Johannesburg CBD. The merged entity's market share in retail space within a six kilometre radius is less than 17%, and there are approximately thirty competitors in the residential property market. The retail component is incidental to the residential focus, and small operators have a wide choice of landlords post-merger. The Commission's analysis and the evidence presented by the parties indicated that the merger is unlikely to substantially prevent or lessen competition. No public interest concerns were identified. Accordingly, the Tribunal...

Citation
[2015] ZACT 3
Parties
Applicant: AFHCO Holdings (Pty) Ltd; Respondent: Morulat Property Investments 4 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 January 2015
Case Number
020115
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Anton Roskam, Yasmin Garrim
Legal Topics
Large Merger, Horizontal Overlap, Market Share Analysis, Public Interest, Residential Property Market
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Market Share Analysis Public Interest Residential Property Market

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Parties

AFHCO Holdings (Pty) Ltd

Applicant

Morulat Property Investments 4 (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger between AFHCO Holdings and Morulat Property Investments will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction results in a horizontal overlap in the market for residential property and retail space in the Johannesburg CBD. The merged entity's market share in retail space within a six kilometre radius is less than 17%, and there are approximately thirty competitors in the residential property market. The retail component is incidental to the residential focus, and small operators have a wide choice of landlords post-merger. The Commission's analysis and the evidence presented by the parties indicated that the merger is unlikely to substantially prevent or lessen competition. No public interest concerns were identified. Accordingly, the Tribunal...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between AFHCO Holdings (Pty) Ltd and Morulat Property Investments 4 (Pty) Ltd is approved without conditions.