EA Waterfall Logistics JV Proprietary Limited v Truzen 116 Trust (LM058Jul20) [2020] ZACT 29; [2020] 2 CPLR 745 (CT) (3 September 2020)

EA Waterfall Logistics JV Proprietary Limited v Truzen 116 Trust (LM058Jul20) [2020] ZACT 29; [2020] 2 CPLR 745 (CT) (3 September 2020)

The Tribunal found that the proposed transaction results in a horizontal overlap in the provision of rentable light industrial properties, but the accretion in market share is minimal (1%), and the acquiring group already jointly owns the target property. The relevant market was defined as rentable light industrial property within a 15 km radius of the target property. The Commission's investigation revealed that there are numerous competing properties in the area, and the merger would not alter the market structure or incentives in a manner that would substantially lessen or prevent competition. The only tenant, Cummins South Africa (Pty) Ltd, expressed no concerns. No public interest...

Citation
[2020] ZACT 29
Parties
Applicant: EA Waterfall Logistics JV Proprietary Limited; Respondent: Truzen 116 Trust
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 September 2020
Case Number
LM058Jul20
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved unconditionally.
Judges
E Daniels, AW Wessels, H Cheadle
Legal Topics
Large Merger, Market Definition, Public Interest, Horizontal Overlap, Sole Control Acquisition
Competition Law Commercial and Corporate Large Merger Market Definition Public Interest Horizontal Overlap Sole Control Acquisition

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Parties

EA Waterfall Logistics JV Proprietary Limited

Applicant

Truzen 116 Trust

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially lessen or prevent competition in the market for rentable light industrial property within a 15 km radius of the target property.
  2. 2 Whether the merger raises any public interest concerns, including employment or impact on third-party service providers.

Ratio Decidendi

The Tribunal found that the proposed transaction results in a horizontal overlap in the provision of rentable light industrial properties, but the accretion in market share is minimal (1%), and the acquiring group already jointly owns the target property. The relevant market was defined as rentable light industrial property within a 15 km radius of the target property. The Commission's investigation revealed that there are numerous competing properties in the area, and the merger would not alter the market structure or incentives in a manner that would substantially lessen or prevent competition. The only tenant, Cummins South Africa (Pty) Ltd, expressed no concerns. No public interest...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between EA Waterfall Logistics JV Proprietary Limited and Truzen 116 Trust in respect of an undivided half share of the property letting enterprise known as Cummins is approved without conditions.