Growthpoint Properties Ltd v Joburg Stay (Pty) Ltd (LM048Jul21) [2021] ZACT 58 (15 September 2021)

Growthpoint Properties Ltd v Joburg Stay (Pty) Ltd (LM048Jul21) [2021] ZACT 58 (15 September 2021)

The Tribunal found that the proposed merger between Growthpoint Properties Ltd and Joburg Stay (Pty) Ltd does not result in any horizontal or vertical overlaps, as Growthpoint does not own student accommodation properties and the target properties are distinct from its existing portfolio. The Tribunal accepted the merging parties' unequivocal statement that no retrenchments would occur and that employees would be transferred on no less favourable terms. The merger was found to promote greater ownership by historically disadvantaged persons, with post-merger shareholding above 40%. No third party raised concerns. The Tribunal concluded that the transaction is unlikely to substantially...

Citation
[2021] ZACT 58
Parties
Applicant: Growthpoint Properties Ltd; Respondent: Joburg Stay (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 September 2021
Case Number
LM048Jul21
Procedural Posture
Merger Application / Final Determination
Outcome
Merger unconditionally approved.
Judges
E Daniels, I Valodia, Y Carrim
Legal Topics
Large Merger, Public Interest, Horizontal Overlap, Vertical Overlap, Ownership by Historically Disadvantaged Persons
Competition Law Large Merger Public Interest Horizontal Overlap Vertical Overlap Ownership by Historically Disadvantaged Persons

Case Brief

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Parties

Growthpoint Properties Ltd

Applicant

Joburg Stay (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Final Determination

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger will have a negative impact on the public interest, including employment and ownership by historically disadvantaged persons.
  3. 3 Whether there are any horizontal or vertical overlaps between the activities of the merging parties.

Ratio Decidendi

The Tribunal found that the proposed merger between Growthpoint Properties Ltd and Joburg Stay (Pty) Ltd does not result in any horizontal or vertical overlaps, as Growthpoint does not own student accommodation properties and the target properties are distinct from its existing portfolio. The Tribunal accepted the merging parties' unequivocal statement that no retrenchments would occur and that employees would be transferred on no less favourable terms. The merger was found to promote greater ownership by historically disadvantaged persons, with post-merger shareholding above 40%. No third party raised concerns. The Tribunal concluded that the transaction is unlikely to substantially...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Growthpoint Properties Ltd and Joburg Stay (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).