Government Employees Pension Fund v Trevenna Development Company (Pty) Ltd in respect of the Trevenna Building (017640) [2013] ZACT 98 (1 October 2013)

Government Employees Pension Fund v Trevenna Development Company (Pty) Ltd in respect of the Trevenna Building (017640) [2013] ZACT 98 (1 October 2013)

The Tribunal found that the merged entity's post-merger market share in the market for rentable A-Grade office space within a 5 km radius of the Trevenna Building would be less than 15%. Regardless of the precise market definition, this low market share means the transaction is unlikely to substantially prevent or lessen competition. The Tribunal also noted that there would be no adverse effect on employment or other public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2013] ZACT 98
Parties
Applicant: Government Employees Pension Fund; Respondent: Trevenna Development Company (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 October 2013
Case Number
017640
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger unconditionally approved.
Judges
Andreas Wessels, Andiswa Ndoni, Mondo Mazwai
Legal Topics
Merger Control, Office Property Market, Market Share Analysis, Public Interest, Employment Effects
Competition Law Commercial and Corporate Land and Property Merger Control Office Property Market Market Share Analysis Public Interest Employment Effects

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Parties

Government Employees Pension Fund

Applicant

Trevenna Development Company (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of Trevenna's 49% share in the Trevenna Building by GEPF is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the merged entity's post-merger market share in the market for rentable A-Grade office space within a 5 km radius of the Trevenna Building would be less than 15%. Regardless of the precise market definition, this low market share means the transaction is unlikely to substantially prevent or lessen competition. The Tribunal also noted that there would be no adverse effect on employment or other public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Government Employees Pension Fund and Trevenna Development Company (Pty) Ltd in respect of the Trevenna Building is approved unconditionally.