Capital Popfund Proprietary Limited v JR209 Investments Proprietary Limited, in respect of the vacant land and immovable property and letting enterprise to be constructed on Portion 61 (a portion of Portion 8) of the farm Witfontein 16, in the City of Ekurhuleni, Gauteng (LM116Sep16) [2016] ZACT 106 (1 December 2016)

Capital Popfund Proprietary Limited v JR209 Investments Proprietary Limited, in respect of the vacant land and immovable property and letting enterprise to be constructed on Portion 61 (a portion of Portion 8) of the farm Witfontein 16, in the City of Ekurhuleni, Gauteng (LM116Sep16) [2016] ZACT 106 (1 December 2016)

The Tribunal found that the proposed transaction would not result in a substantial lessening of competition in the market for rentable light industrial property in the relevant Gauteng nodes. The merged entity's market share would remain below 20%, and the market accretion would be less than 5%. The presence of strong competitors such as Growthpoint Properties Limited, Redefine Properties Limited, and Black Pepper Properties Proprietary Limited would continue to constrain the merged entity. Furthermore, the transaction would not adversely affect employment or raise other public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2016] ZACT 106
Parties
Applicant: Capital Popfund Proprietary Limited; Respondent: JR209 Investments Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 December 2016
Case Number
LM116sep16
Procedural Posture
Merger Review / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Employment Impact
Competition Law Land and Property Merger Control Horizontal Overlap Market Share Analysis Public Interest Employment Impact

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Parties

Capital Popfund Proprietary Limited

Applicant

JR209 Investments Proprietary Limited

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impact.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial lessening of competition in the market for rentable light industrial property in the relevant Gauteng nodes. The merged entity's market share would remain below 20%, and the market accretion would be less than 5%. The presence of strong competitors such as Growthpoint Properties Limited, Redefine Properties Limited, and Black Pepper Properties Proprietary Limited would continue to constrain the merged entity. Furthermore, the transaction would not adversely affect employment or raise other public interest concerns. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Capital Popfund Proprietary Limited and JR209 Investments Proprietary Limited is approved unconditionally.
  • No conditions are imposed on the approval.