Dipula Income Fund Limited v Luxiano Trading 181 (Pty) Ltd (LM291Feb18) [2018] ZACT 33 (28 March 2018)

Dipula Income Fund Limited v Luxiano Trading 181 (Pty) Ltd (LM291Feb18) [2018] ZACT 33 (28 March 2018)

The Tribunal found that the proposed merger between Dipula Income Fund Limited and Luxanio Trading 181 (Pty) Ltd would not substantially prevent or lessen competition in any relevant market. The merged entity's market shares in the affected markets were low, and significant competition would remain from other established retail and office property providers. The Tribunal also noted that the alleged horizontal overlap in the Hyde Park node was not supported by the facts, as only Luxanio owned property there. Furthermore, the merger raised no public interest concerns, including retrenchments or job losses. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2018] ZACT 33
Parties
Applicant: Dipula Income Fund Limited; Respondent: Luxanio Trading 181 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 March 2018
Case Number
LM291Feb18
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed merger is approved unconditionally.
Judges
Yasmin Carrim, Medi Mokuena, Fiona Tregenna
Legal Topics
Merger Control, Market Share Analysis, Public Interest, Horizontal Overlap
Competition Law Commercial and Corporate Merger Control Market Share Analysis Public Interest Horizontal Overlap

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Dipula Income Fund Limited

Applicant

Luxanio Trading 181 (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including retrenchments or job losses.
  3. 3 Whether there is a horizontal overlap in the Hyde Park node for Grade A office properties.

Ratio Decidendi

The Tribunal found that the proposed merger between Dipula Income Fund Limited and Luxanio Trading 181 (Pty) Ltd would not substantially prevent or lessen competition in any relevant market. The merged entity's market shares in the affected markets were low, and significant competition would remain from other established retail and office property providers. The Tribunal also noted that the alleged horizontal overlap in the Hyde Park node was not supported by the facts, as only Luxanio owned property there. Furthermore, the merger raised no public interest concerns, including retrenchments or job losses. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between Dipula Income Fund Limited and Luxanio Trading 181 (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the merger.