Growthpoint Student Accommodation Holdings (RF) Ltd v Feenstra Group Developments (Pty) Ltd (LM174Jan23) [2023] ZACT 14; [2023] 2 CPLR 21 (CT) (3 April 2023)

Growthpoint Student Accommodation Holdings (RF) Ltd v Feenstra Group Developments (Pty) Ltd (LM174Jan23) [2023] ZACT 14; [2023] 2 CPLR 21 (CT) (3 April 2023)

The Tribunal found that the proposed merger between GSAH and Feenstra Group Developments, involving the acquisition of Brooklyn Studios, does not raise competition concerns. The relevant product market is the provision of rentable space in residential properties for student accommodation, with a geographic market defined as an 8km radius from Brooklyn Studios. The merging parties' combined market share is relatively low, and there are numerous alternative providers, including university residence accommodation and over 35 accredited private providers. Even if university residence accommodation is excluded, the merged entity's market share remains insufficient to raise unilateral effects...

Citation
[2023] ZACT 14
Parties
Applicant: Growthpoint Student Accommodation Holdings (RF) Ltd; Respondent: Feenstra Group Developments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 April 2023
Case Number
LM174Jan23
Procedural Posture
Large Merger Review / Final Approval
Outcome
Merger approved unconditionally; no substantial prevention or lessening of competition or public interest concerns identified.
Judges
Mondo Mazwai, Jerome Wilson, Andreas Wessels
Legal Topics
Large Merger, Student Accommodation Market, Horizontal Overlap, Public Interest, Market Definition, Information Exchange
Competition Law Commercial and Corporate Large Merger Student Accommodation Market Horizontal Overlap Public Interest Market Definition Information Exchange

Case Brief

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Parties

Growthpoint Student Accommodation Holdings (RF) Ltd

Applicant

Feenstra Group Developments (Pty) Ltd

Respondent

Procedural Posture

Large Merger Review / Final Approval

Legal Issues

  1. 1 Does the proposed merger substantially prevent or lessen competition in the relevant market for student accommodation?
  2. 2 Does the transaction raise any public interest concerns, including employment and spread of ownership?
  3. 3 Does Feenstra's ongoing role post-merger raise information exchange concerns?

Ratio Decidendi

The Tribunal found that the proposed merger between GSAH and Feenstra Group Developments, involving the acquisition of Brooklyn Studios, does not raise competition concerns. The relevant product market is the provision of rentable space in residential properties for student accommodation, with a geographic market defined as an 8km radius from Brooklyn Studios. The merging parties' combined market share is relatively low, and there are numerous alternative providers, including university residence accommodation and over 35 accredited private providers. Even if university residence accommodation is excluded, the merged entity's market share remains insufficient to raise unilateral effects...

Court Disposition

Merger approved unconditionally; no substantial prevention or lessening of competition or public interest concerns identified.

Orders

  • The proposed transaction is approved unconditionally.
  • No conditions are imposed on the merger.