Growpoint Properties Ltd v Tiber Property Group (Pty) Ltd (018143) [2014] ZACT 42 (5 March 2014)

Growpoint Properties Ltd v Tiber Property Group (Pty) Ltd (018143) [2014] ZACT 42 (5 March 2014)

The Tribunal found that the proposed transaction resulted in horizontal overlaps in the market for rentable Grade A, B, and P office properties and retail properties in Johannesburg. However, post-merger market shares, even in the most affected nodes, did not indicate a substantial prevention or lessening of competition. Customers demonstrated countervailing power, and alternative properties were available. The only concern raised by Transnet regarding a right of first refusal was dismissed as not applicable under the current circumstances. No competitors raised objections. The Tribunal further found no adverse public interest effects, including on employment. Accordingly, the merger was...

Citation
[2014] ZACT 42
Parties
Applicant: Growthpoint Properties Ltd; Respondent: Tiber Property Group (Pty) Ltd; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 March 2014
Case Number
018143
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Takaiani Madima, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Property Investment, Retail and Office Space
Competition Law Commercial and Corporate Land and Property Merger Control Horizontal Overlap Market Share Analysis Public Interest Property Investment +1 more

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Parties

Growthpoint Properties Ltd

Applicant

Tiber Property Group (Pty) Ltd

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Growthpoint and Tiber Property Group will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.
  3. 3 Whether the transaction complies with the requirements of the Competition Act for unconditional approval.

Ratio Decidendi

The Tribunal found that the proposed transaction resulted in horizontal overlaps in the market for rentable Grade A, B, and P office properties and retail properties in Johannesburg. However, post-merger market shares, even in the most affected nodes, did not indicate a substantial prevention or lessening of competition. Customers demonstrated countervailing power, and alternative properties were available. The only concern raised by Transnet regarding a right of first refusal was dismissed as not applicable under the current circumstances. No competitors raised objections. The Tribunal further found no adverse public interest effects, including on employment. Accordingly, the merger was...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Growthpoint Properties Ltd and Tiber Property Group (Pty) Ltd is approved without conditions.