Grayston Prop Number 005 (Pty) Limited and Gateway Partnership (71/LM/Jun00) [2000] ZACT 29 (30 June 2000)

Grayston Prop Number 005 (Pty) Limited and Gateway Partnership (71/LM/Jun00) [2000] ZACT 29 (30 June 2000)

The Tribunal found that the post-merger market share of the acquiring group would be only 1.78% in the relevant market for rentable office space in the Greater Sandton Area. This is a very small share and does not raise competition concerns. The Tribunal also accepted the parties' submissions that the merger would not negatively affect employment or other public interest factors, as the office block is being sold as a going concern. Accordingly, the merger was approved without conditions.

Citation
[2000] ZACT 29
Parties
Applicant: Grayston Prop Number 005 (Pty) Limited; Respondent: The Gateway Partnership
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 June 2000
Case Number
71LM/Jun00
Procedural Posture
Large Merger Review / Merger Clearance
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, P.E. Maponya
Legal Topics
Large Merger Review, Market Definition, Market Share Analysis, Public Interest Considerations
Competition Law Large Merger Review Market Definition Market Share Analysis Public Interest Considerations

Case Brief

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Parties

Grayston Prop Number 005 (Pty) Limited

Applicant

The Gateway Partnership

Respondent

Procedural Posture

Large Merger Review / Merger Clearance

Legal Issues

  1. 1 Does the proposed merger substantially prevent or lessen competition in the relevant market for rentable office space in the Greater Sandton Area?
  2. 2 Will the merger have any adverse public interest effects, including on employment?

Ratio Decidendi

The Tribunal found that the post-merger market share of the acquiring group would be only 1.78% in the relevant market for rentable office space in the Greater Sandton Area. This is a very small share and does not raise competition concerns. The Tribunal also accepted the parties' submissions that the merger would not negatively affect employment or other public interest factors, as the office block is being sold as a going concern. Accordingly, the merger was approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Grayston Prop Number 005 (Pty) Limited and The Gateway Partnership is approved without conditions.