Gauteng Provincial Government and ApexHi Properties Ltd (79/LM/Oct04) [2004] ZACT 71 (28 October 2004)

Gauteng Provincial Government and ApexHi Properties Ltd (79/LM/Oct04) [2004] ZACT 71 (28 October 2004)

The Tribunal found that although both parties own rentable office space in the Johannesburg CBD, Gauteng Provincial Government does not lease its properties to independent tenants and therefore does not compete in the market for rentable office space. The acquisition is for internal use and does not alter the competitive dynamics of the market. There are multiple players in the market, and the transaction does not raise any significant public interest concerns. Consequently, the merger does not result in a substantial lessening of competition and is approved unconditionally.

Citation
[2004] ZACT 71
Parties
Applicant: Gauteng Provincial Government (Department of Public Transport, Roads and Works); Respondent: ApexHi Properties Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 October 2004
Case Number
79/LM/Oct04
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger unconditionally approved.
Judges
D Lewis, N Manoim, M Mokuena
Legal Topics
Large Merger, Market Definition, Substantial Lessening of Competition, Public Interest, Rentable Office Space
Competition Law Large Merger Market Definition Substantial Lessening of Competition Public Interest Rentable Office Space

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Parties

Gauteng Provincial Government (Department of Public Transport, Roads and Works)

Applicant

ApexHi Properties Ltd

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Whether the acquisition of properties by Gauteng Provincial Government from ApexHi Properties Ltd will substantially lessen competition in the market for rentable office space in the Johannesburg CBD.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that although both parties own rentable office space in the Johannesburg CBD, Gauteng Provincial Government does not lease its properties to independent tenants and therefore does not compete in the market for rentable office space. The acquisition is for internal use and does not alter the competitive dynamics of the market. There are multiple players in the market, and the transaction does not raise any significant public interest concerns. Consequently, the merger does not result in a substantial lessening of competition and is approved unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Gauteng Provincial Government and ApexHi Properties Ltd is approved without conditions.