Growthpoint Properties Ltd v Abseq Properties (Pty) Ltd (018002) [2013] ZACT 118 (6 December 2013)

Growthpoint Properties Ltd v Abseq Properties (Pty) Ltd (018002) [2013] ZACT 118 (6 December 2013)

The Tribunal found that the proposed transaction would result in horizontal product and geographic overlaps in the market for rentable A-grade and B-grade office properties, specifically in several nodes including Woodmead. However, the estimated market shares pre- and post-merger were not significant, and there were numerous competitors and new developments in the affected areas. The merging parties confirmed that no retrenchments would occur and that there were no adverse public interest effects. Consequently, the Tribunal concluded that the merger would not substantially prevent or lessen competition in any relevant market and did not raise public interest concerns. The merger was...

Citation
[2013] ZACT 118
Parties
Applicant: Growthpoint Properties Limited; Respondent: Abseq Properties (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 December 2013
Case Number
018002
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
Takalani Madima, Mondo Mazwai, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Market Share Analysis
Competition Law Merger Control Horizontal Overlap Public Interest Market Share Analysis

Case Brief

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Parties

Growthpoint Properties Limited

Applicant

Abseq Properties (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger between Growthpoint Properties Limited and Abseq Properties (Pty) Ltd will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would result in horizontal product and geographic overlaps in the market for rentable A-grade and B-grade office properties, specifically in several nodes including Woodmead. However, the estimated market shares pre- and post-merger were not significant, and there were numerous competitors and new developments in the affected areas. The merging parties confirmed that no retrenchments would occur and that there were no adverse public interest effects. Consequently, the Tribunal concluded that the merger would not substantially prevent or lessen competition in any relevant market and did not raise public interest concerns. The merger was...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Growthpoint Properties Limited and Abseq Properties (Pty) Ltd is approved without conditions.