Delta Property Fund Limited v Orthotouch Limited (LM073Jul15) [2015] ZACT 95 (25 November 2015)

Delta Property Fund Limited v Orthotouch Limited (LM073Jul15) [2015] ZACT 95 (25 November 2015)

The Tribunal found that, although the merged entity would have a significant market share in Grade B and C office properties in Bloemfontein, mitigating factors such as medium to long-term leases, substantial countervailing power of government tenants, and upcoming new developments would constrain any potential anti-competitive effects. In Nelspruit, the market share and accretion were minimal, and tenants were protected by existing leases and alternative vacant spaces. No adverse impact on employment or other public interest concerns were identified. Therefore, the merger was unlikely to substantially prevent or lessen competition or negatively affect public interest, and unconditional...

Citation
[2015] ZACT 95
Parties
Applicant: Delta Property Fund Limited; Respondent: Orthotouch Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 November 2015
Case Number
LM073Jul15
Procedural Posture
Merger Application / Approval
Outcome
The merger between Delta Property Fund Limited and Orthotouch Limited is unconditionally approved.
Judges
Yasmin Carrim, Andiswa Ndoni, Anton Roskam
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Office Property Market
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Share Analysis Public Interest Office Property Market

Case Brief

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Parties

Delta Property Fund Limited

Applicant

Orthotouch Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant office property markets.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that, although the merged entity would have a significant market share in Grade B and C office properties in Bloemfontein, mitigating factors such as medium to long-term leases, substantial countervailing power of government tenants, and upcoming new developments would constrain any potential anti-competitive effects. In Nelspruit, the market share and accretion were minimal, and tenants were protected by existing leases and alternative vacant spaces. No adverse impact on employment or other public interest concerns were identified. Therefore, the merger was unlikely to substantially prevent or lessen competition or negatively affect public interest, and unconditional...

Court Disposition

The merger between Delta Property Fund Limited and Orthotouch Limited is unconditionally approved.

Orders

  • The proposed transaction is approved unconditionally.