Equites Property Fund Limited v Attacq Waterfall Investment Company (Pty) Ltd (LM063Aug21) [2021] ZACT 68 (5 October 2021)

Equites Property Fund Limited v Attacq Waterfall Investment Company (Pty) Ltd (LM063Aug21) [2021] ZACT 68 (5 October 2021)

The Tribunal found that the proposed merger between Equites Property Fund Limited and Attacq Waterfall Investment Company (Pty) Ltd, involving undivided half share interests in the Amrod, Massmart, and Cotton-On properties, would not substantially prevent or lessen competition in the market for rentable light industrial properties within a 15km radius of the Target Enterprises in Midrand. The combined post-merger market share would be less than 10%, with an accretion of less than 1%, and there are sufficient alternative properties available in the area. No public interest concerns were identified. Accordingly, the Tribunal unconditionally approved the merger.

Citation
[2021] ZACT 68
Parties
Applicant: Equites Property Fund Limited; Respondent: Attacq Waterfall Investment Company (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 October 2021
Case Number
LM063Aug21
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger unconditionally approved.
Judges
Enver Daniels, Imraan Valodia, Halton Cheadle
Legal Topics
Large Merger, Market Share Analysis, Horizontal Overlap, Public Interest, Rentable Light Industrial Properties
Competition Law Commercial and Corporate Large Merger Market Share Analysis Horizontal Overlap Public Interest Rentable Light Industrial Properties

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Parties

Equites Property Fund Limited

Applicant

Attacq Waterfall Investment Company (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the market for rentable light industrial properties within a 15km radius of the Target Enterprises in Midrand.
  2. 2 Whether the merger raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Equites Property Fund Limited and Attacq Waterfall Investment Company (Pty) Ltd, involving undivided half share interests in the Amrod, Massmart, and Cotton-On properties, would not substantially prevent or lessen competition in the market for rentable light industrial properties within a 15km radius of the Target Enterprises in Midrand. The combined post-merger market share would be less than 10%, with an accretion of less than 1%, and there are sufficient alternative properties available in the area. No public interest concerns were identified. Accordingly, the Tribunal unconditionally approved the merger.

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Equites Property Fund Limited and Attacq Waterfall Investment Company (Pty) Ltd is unconditionally approved.
  • No conditions are imposed on the approval of the merger.