City Of Cape v Certain immovable property and letting enterprises owned by Paardevlei Properties Proprietary Limited (LM044Jun15) [2015] ZACT 86 (20 July 2015)

City Of Cape v Certain immovable property and letting enterprises owned by Paardevlei Properties Proprietary Limited (LM044Jun15) [2015] ZACT 86 (20 July 2015)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market, as the Target Property currently has only a small industrial component and will be converted into a mixed-use human settlement. The City undertook to honour existing lease agreements, and both parties confirmed that there would be no adverse effect on employment. No other public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2015] ZACT 86
Parties
Applicant: City of Cape Town; Respondent: Paardevlei Properties Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 July 2015
Case Number
LM044Jun15
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Fiona Tregenna, Medi Mokuena
Legal Topics
Merger Control, Public Interest, Mixed Use Development
Competition Law Land and Property Merger Control Public Interest Mixed Use Development

Case Brief

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Parties

City of Cape Town

Applicant

Paardevlei Properties Proprietary Limited

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed merger raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market, as the Target Property currently has only a small industrial component and will be converted into a mixed-use human settlement. The City undertook to honour existing lease agreements, and both parties confirmed that there would be no adverse effect on employment. No other public interest concerns were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between the City of Cape Town and certain immovable property and letting enterprises owned by Paardevlei Properties Proprietary Limited is approved without conditions.