Growthpoint Properties Limited and Tresso 119 (Pty) Ltd (27/LM/Apr05) [2005] ZACT 38 (9 June 2005)

Growthpoint Properties Limited and Tresso 119 (Pty) Ltd (27/LM/Apr05) [2005] ZACT 38 (9 June 2005)

The Tribunal found that the combined market shares of the merging parties in the overlapping property markets were generally low, except for Grade B office space in Sandton, where the post-merger share was approximately 23%. However, this figure was based on data from SAPOA members only, and inclusion of non-members would reduce the share. The Tribunal accepted the Commission's view that no competition concerns arose, as the merged entity would continue to face competition from other large property companies and tenants possessed significant countervailing power due to market oversupply. The industrial warehousing market was also found to be highly competitive. No significant public...

Citation
[2005] ZACT 38
Parties
Applicant: Growthpoint Properties Limited; Respondent: Tresso 119 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 June 2005
Case Number
27/LM/Apr05
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, U Bhoola, M Mokuena
Legal Topics
Large Merger Review, Market Share Analysis, Public Interest, Countervailing Power
Competition Law Commercial and Corporate Large Merger Review Market Share Analysis Public Interest Countervailing Power

Case Brief

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Parties

Growthpoint Properties Limited

Applicant

Tresso 119 (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening of competition in the identified property markets.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the combined market shares of the merging parties in the overlapping property markets were generally low, except for Grade B office space in Sandton, where the post-merger share was approximately 23%. However, this figure was based on data from SAPOA members only, and inclusion of non-members would reduce the share. The Tribunal accepted the Commission's view that no competition concerns arose, as the merged entity would continue to face competition from other large property companies and tenants possessed significant countervailing power due to market oversupply. The industrial warehousing market was also found to be highly competitive. No significant public...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Growthpoint Properties Limited and Tresso 119 (Pty) Ltd is approved without conditions.
  • The parties are to lodge the finalized trust documentation with the Tribunal as soon as available.