Cullinan Hotel (Pty) Ltd v The Businesses and underlying Properties of The Sandton Sun, The Intercontinental Sandton Towers, The Garden Court Sandton City; The Sandton Convention Centre Property; And The Rental Enterprises Convention Centre And Virgin Active (LM110Sep16) [2016] ZACT 101; [2017] 1 CPLR 405 (CT) (7 December 2016)

Cullinan Hotel (Pty) Ltd v The Businesses and underlying Properties of The Sandton Sun, The Intercontinental Sandton Towers, The Garden Court Sandton City; The Sandton Convention Centre Property; And The Rental Enterprises Convention Centre And Virgin Active (LM110Sep16) [2016] ZACT 101; [2017] 1 CPLR 405 (CT) (7 December 2016)

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the markets for 3 and 5 star hotel accommodation in Sandton. The transaction involves a change of ownership of the underlying businesses and properties, but the management and operation of the hotels remain unchanged under SSHI. The merged entity's market share, while significant, does not alter the competitive dynamics, as strong competitors remain in the market. The acquisition of the Sandton Convention Centre and Virgin Active properties does not raise competition concerns, as the acquiring group does not own or manage similar properties. No public interest concerns were identified....

Citation
[2016] ZACT 101
Parties
Applicant: Cullinan Hotel (Pty) Ltd; Respondent: The Businesses and underlying Properties of The Sandton Sun, The Intercontinental Sandton Towers, The Garden Court Sandton City; The Sandton Convention Centre Property; And The Rental Enterprises Convention Centre And Virgin Active; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 December 2016
Case Number
LM110Sep16
Procedural Posture
Large Merger Review / Approval and Reasons
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Yasmin Carrim, Medi Mokuena
Legal Topics
Large Merger, Market Share Analysis, Public Interest, Hotel Accommodation Market, Change of Control
Competition Law Large Merger Market Share Analysis Public Interest Hotel Accommodation Market Change of Control

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Parties

Cullinan Hotel (Pty) Ltd

Applicant

The Businesses and underlying Properties of The Sandton Sun, The Intercontinental Sandton Towers, The Garden Court Sandton City; The Sandton Convention Centre Property; And The Rental Enterprises Convention Centre And Virgin Active

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant hotel accommodation markets in Sandton.
  2. 2 Whether the transaction raises any public interest concerns.
  3. 3 Whether the change in ownership alters the competitive dynamics in the affected markets.

Ratio Decidendi

The Tribunal found that the proposed merger would not substantially prevent or lessen competition in the markets for 3 and 5 star hotel accommodation in Sandton. The transaction involves a change of ownership of the underlying businesses and properties, but the management and operation of the hotels remain unchanged under SSHI. The merged entity's market share, while significant, does not alter the competitive dynamics, as strong competitors remain in the market. The acquisition of the Sandton Convention Centre and Virgin Active properties does not raise competition concerns, as the acquiring group does not own or manage similar properties. No public interest concerns were identified....

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Cullinan Hotel (Pty) Ltd and the businesses and underlying properties of the Sandton Sun, the Intercontinental Sandton Towers, the Garden Court Sandton City, the Sandton Convention Centre property, and the rental enterprises in respect of the Sandton Convention Centre and Virgin Active is...