G and C Shelf 115 (Pty) Ltd v Sydney Road Property in Durban (owned by Redefine Properties Ltd) (LM139Sep15) [2015] ZACT 104 (25 November 2015)

G and C Shelf 115 (Pty) Ltd v Sydney Road Property in Durban (owned by Redefine Properties Ltd) (LM139Sep15) [2015] ZACT 104 (25 November 2015)

The Tribunal found that there is no horizontal overlap between the activities of the acquiring group and the target property, as the acquiring group is not active in the property market. No vertical relationship or foreclosure concerns arise, since the property was not leased to third parties. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition. Furthermore, the merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. The Tribunal therefore concluded that the proposed transaction does not raise competition or public interest issues and approved the merger unconditionally.

Citation
[2015] ZACT 104
Parties
Applicant: G and C Shelf 115 (Pty) Ltd; Respondent: Sydney Road Property in Durban (owned by Redefine Properties Ltd)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 November 2015
Case Number
LM139Sep15
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Andiswa Ndoni, Anton Roskam
Legal Topics
Merger Notification, Substantial Lessening of Competition, Public Interest, Vertical Relationships
Competition Law Commercial and Corporate Merger Notification Substantial Lessening of Competition Public Interest Vertical Relationships

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Parties

G and C Shelf 115 (Pty) Ltd

Applicant

Sydney Road Property in Durban (owned by Redefine Properties Ltd)

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap between the activities of the acquiring group and the target property, as the acquiring group is not active in the property market. No vertical relationship or foreclosure concerns arise, since the property was not leased to third parties. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition. Furthermore, the merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. The Tribunal therefore concluded that the proposed transaction does not raise competition or public interest issues and approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.