Ascension Properties Limited v Mutodo Properties Proprietary Limited in respect of Jorissen Place (LM231Feb16) [2016] ZACT 20 (23 March 2016)

Ascension Properties Limited v Mutodo Properties Proprietary Limited in respect of Jorissen Place (LM231Feb16) [2016] ZACT 20 (23 March 2016)

The Tribunal found that there is no significant geographical overlap between the properties of the merging parties. The merged entity's market share in all relevant markets—Grade A office properties, Grade A and B office properties, and convenience retail centres—remains below 10% and 5% respectively, indicating a minor competitive presence. The merged entity will continue to face substantial competition from other property owners. No adverse impact on employment or other public interest concerns was identified. Accordingly, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition and raises no public interest issues.

Citation
[2016] ZACT 20
Parties
Applicant: Ascension Properties Limited; Respondent: Mutodo Properties Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 March 2016
Case Number
LM231Feb16
Procedural Posture
Merger Control / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Andreas Wessels, Fiona Tregenna, Andiswa Ndoni
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Office Property Market, Employment Impact
Competition Law Commercial and Corporate Land and Property Merger Control Market Share Analysis Public Interest Office Property Market Employment Impact

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Parties

Ascension Properties Limited

Applicant

Mutodo Properties Proprietary Limited

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of Jorissen Place by Ascension Properties will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that there is no significant geographical overlap between the properties of the merging parties. The merged entity's market share in all relevant markets—Grade A office properties, Grade A and B office properties, and convenience retail centres—remains below 10% and 5% respectively, indicating a minor competitive presence. The merged entity will continue to face substantial competition from other property owners. No adverse impact on employment or other public interest concerns was identified. Accordingly, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition and raises no public interest issues.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Ascension Properties Limited and Mutodo Properties Proprietary Limited in respect of Jorissen Place is approved without conditions.