Fortyellow (Pty) Ltd (t/a Fortwood) v DSV Real Estate Johannesburg (Pty) Ltd (LM0139Oct20) [2020] ZACT 105 (30 November 2020)

Fortyellow (Pty) Ltd (t/a Fortwood) v DSV Real Estate Johannesburg (Pty) Ltd (LM0139Oct20) [2020] ZACT 105 (30 November 2020)

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition in any relevant market. The Acquiring Group and the Target Property operate in different segments of the office rental market, and the geographic overlap is minimal. In the light industrial property market, the merged entity's post-merger market share would be approximately 11.09%, with a minimal accretion of 1.75%. The market remains competitive, with several other significant players. No public interest concerns arise, as DSV has no employees and thus no retrenchments will occur. The transaction also advances black economic empowerment objectives. Accordingly, the...

Citation
[2020] ZACT 105
Parties
Applicant: Fortyellow (Pty) Ltd (t/a Fortwood); Respondent: DSV Real Estate Johannesburg (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 November 2020
Case Number
LM0139Oct20
Procedural Posture
Merger Review / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
M Mazwai, E Daniels, A Ndoni
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Analysis, Property Acquisition
Competition Law Commercial and Corporate Land and Property Merger Control Market Definition Public Interest Market Share Analysis Property Acquisition

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Parties

Fortyellow (Pty) Ltd (t/a Fortwood)

Applicant

DSV Real Estate Johannesburg (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition in any relevant market. The Acquiring Group and the Target Property operate in different segments of the office rental market, and the geographic overlap is minimal. In the light industrial property market, the merged entity's post-merger market share would be approximately 11.09%, with a minimal accretion of 1.75%. The market remains competitive, with several other significant players. No public interest concerns arise, as DSV has no employees and thus no retrenchments will occur. The transaction also advances black economic empowerment objectives. Accordingly, the...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Fortyellow (Pty) Ltd (t/a Fortwood) and DSV Real Estate Johannesburg (Pty) Ltd is approved without conditions.