Fairvest Property Holdings Limited v Arrowhead Properties Limited (LM047Jul21) [2021] ZACT 64 (23 September 2021)

Fairvest Property Holdings Limited v Arrowhead Properties Limited (LM047Jul21) [2021] ZACT 64 (23 September 2021)

The Tribunal found that the proposed merger between Fairvest Property Holdings Limited and Arrowhead Properties Limited is unlikely to substantially prevent or lessen competition in any of the relevant property markets assessed. Both parties are relatively small to moderate players and will continue to face competition from other property owners. The merger does not raise any public interest concerns, as there will be no retrenchments and no negative impact on the spread of ownership. The transaction may even enhance shareholder spread due to increased liquidity and tradability of shares. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2021] ZACT 64
Parties
Applicant: Fairvest Property Holdings Limited; Respondent: Arrowhead Properties Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 September 2021
Case Number
LM047Jul21
Procedural Posture
Large Merger Review / Merger Approval
Outcome
Merger unconditionally approved.
Judges
Yasmin Carrim, Fiona Tregenna, Anton Roskam
Legal Topics
Large Merger, Market Definition, Public Interest, Spread of Ownership, Retail Property, Office Property
Competition Law Commercial and Corporate Large Merger Market Definition Public Interest Spread of Ownership Retail Property Office Property

Case Brief

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Parties

Fairvest Property Holdings Limited

Applicant

Arrowhead Properties Limited

Respondent

Procedural Posture

Large Merger Review / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Fairvest and Arrowhead is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment and spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger between Fairvest Property Holdings Limited and Arrowhead Properties Limited is unlikely to substantially prevent or lessen competition in any of the relevant property markets assessed. Both parties are relatively small to moderate players and will continue to face competition from other property owners. The merger does not raise any public interest concerns, as there will be no retrenchments and no negative impact on the spread of ownership. The transaction may even enhance shareholder spread due to increased liquidity and tradability of shares. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Fairvest Property Holdings Limited and Arrowhead Properties Limited is approved without conditions.