Grindrod Property Private Equity (Pty) Ltd v Dunrose Investments 82 (Pty) Ltd (LM169Sep18) [2018] ZACT 47 (29 October 2018)

Grindrod Property Private Equity (Pty) Ltd v Dunrose Investments 82 (Pty) Ltd (LM169Sep18) [2018] ZACT 47 (29 October 2018)

The Tribunal found that the proposed transaction does not result in a substantial prevention or lessening of competition in the relevant market for rentable light industrial properties. The merging parties are not competitors due to the lack of geographical overlap, with their properties located more than 10km apart. The acquisition includes one active property and a minority interest in undeveloped land, which is unlikely to be developed in the foreseeable future. The Tribunal also determined that there are no negative public interest effects, including on employment. Therefore, the transaction was approved unconditionally.

Citation
[2018] ZACT 47
Parties
Applicant: Grindrod Property Private Equity (Pty) Ltd; Respondent: Dunrose Investments 82 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 October 2018
Case Number
LM169Sep18
Procedural Posture
Merger Approval / Decision on Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Halton Cheadle
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Joint Control
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Joint Control

Case Brief

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Parties

Grindrod Property Private Equity (Pty) Ltd

Applicant

Dunrose Investments 82 (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Decision on Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in a substantial prevention or lessening of competition in the relevant market for rentable light industrial properties. The merging parties are not competitors due to the lack of geographical overlap, with their properties located more than 10km apart. The acquisition includes one active property and a minority interest in undeveloped land, which is unlikely to be developed in the foreseeable future. The Tribunal also determined that there are no negative public interest effects, including on employment. Therefore, the transaction was approved unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Grindrod Property Private Equity (Pty) Ltd and Dunrose Investments 82 (Pty) Ltd is approved without conditions.