Dipula Income Fund Limited v Bajascape (Pty) Ltd (LM292Feb18) [2018] ZACT 34 (27 March 2018)

Dipula Income Fund Limited v Bajascape (Pty) Ltd (LM292Feb18) [2018] ZACT 34 (27 March 2018)

The Tribunal found that the proposed transaction would result in negligible increases in market share in the affected office and industrial property markets. The presence of other competitors in these markets would continue to constrain the merged entity. The Commission's assessment was accepted, and the Tribunal agreed that the transaction was unlikely to substantially prevent or lessen competition. Furthermore, there were no adverse public interest effects, including on employment. Therefore, the merger was approved unconditionally.

Citation
[2018] ZACT 34
Parties
Applicant: Dipula Income Fund Limited; Respondent: Bajascape (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 March 2018
Case Number
LM292Feb18
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Medi Mokuena, Fiona Tregenna
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Real Estate Investment Trusts
Competition Law Commercial and Corporate Land and Property Merger Control Market Share Analysis Public Interest Real Estate Investment Trusts

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Parties

Dipula Income Fund Limited

Applicant

Bajascape (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that the proposed transaction would result in negligible increases in market share in the affected office and industrial property markets. The presence of other competitors in these markets would continue to constrain the merged entity. The Commission's assessment was accepted, and the Tribunal agreed that the transaction was unlikely to substantially prevent or lessen competition. Furthermore, there were no adverse public interest effects, including on employment. Therefore, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.