DiverCity Urban Property Fund (Pty) Ltd v Atterbury Property Fund (Pty) Ltd in respect of theshares and claims in Talis House (Pty) Ltd (LM084Jun18) [2018] ZACT 61 (25 October 2018)

DiverCity Urban Property Fund (Pty) Ltd v Atterbury Property Fund (Pty) Ltd in respect of theshares and claims in Talis House (Pty) Ltd (LM084Jun18) [2018] ZACT 61 (25 October 2018)

The Tribunal found that the proposed transaction would result in DiverCity acquiring sole control over Talis House, but the merged entity's market share would remain low at 7.31%, with minimal increase. The market would continue to be constrained by other significant competitors such as Redefine, Growthpoint, and Liberty Properties. The Commission did not identify any substantial prevention or lessening of competition, nor any adverse public interest effects, including on employment. The Tribunal agreed with the Commission's assessment and concluded that the transaction does not raise competition or public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2018] ZACT 61
Parties
Applicant: DiverCity Urban Property Fund (Pty) Ltd; Respondent: Atterbury Property Fund (Pty) Ltd in respect of the shares and claims in Talis House (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 October 2018
Case Number
LM084Jun18
Procedural Posture
Merger Control / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Y Carrim, A Ndoni, M Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest, Horizontal Overlap
Competition Law Merger Control Market Definition Public Interest Horizontal Overlap

Case Brief

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Parties

DiverCity Urban Property Fund (Pty) Ltd

Applicant

Atterbury Property Fund (Pty) Ltd in respect of the shares and claims in Talis House (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of Talis House by DiverCity is likely to substantially prevent or lessen competition in any relevant market.
  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 DiverCity acquiring sole control over Talis House, but the merged entity's market share would remain low at 7.31%, with minimal increase. The market would continue to be constrained by other significant competitors such as Redefine, Growthpoint, and Liberty Properties. The Commission did not identify any substantial prevention or lessening of competition, nor any adverse public interest effects, including on employment. The Tribunal agreed with the Commission's assessment and concluded that the transaction does not raise competition or public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The proposed merger between DiverCity Urban Property Fund (Pty) Ltd and Atterbury Property Fund (Pty) Ltd in respect of the shares and claims in Talis House (Pty) Ltd is approved without conditions.