Housing Impact Fund South Africa Trust v Mettle Property Solutions Securitisation (RF) Proprietary Limited (LM025MAY16) [2016] ZACT 54 (20 July 2016)

Housing Impact Fund South Africa Trust v Mettle Property Solutions Securitisation (RF) Proprietary Limited (LM025MAY16) [2016] ZACT 54 (20 July 2016)

The Tribunal found that the proposed transaction would not alter the competitive structure of the relevant market, as HIFSA already exercises de facto control over Mettle and both firms are managed by the same entity. The horizontal overlap in the provision of finance to project companies does not raise competition concerns, and the vertical relationship does not result in foreclosure risks due to HIFSA's limited market share and Mettle's exclusive reliance on HIFSA for financing. No adverse public interest effects, including employment, were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2016] ZACT 54
Parties
Applicant: The Housing Impact Fund South Africa Trust; Respondent: Mettle Property Solutions Securitisation (RF) Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 July 2016
Case Number
LM025MAY16
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
AW Wessels, Andiswa Ndoni, Fiona Tregenna
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Public Interest, Market Structure
Competition Law Merger Control Horizontal Overlap Vertical Relationship Public Interest Market Structure

Case Brief

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Parties

The Housing Impact Fund South Africa Trust

Applicant

Mettle Property Solutions Securitisation (RF) Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition by HIFSA of the remaining shares in Mettle would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction would not alter the competitive structure of the relevant market, as HIFSA already exercises de facto control over Mettle and both firms are managed by the same entity. The horizontal overlap in the provision of finance to project companies does not raise competition concerns, and the vertical relationship does not result in foreclosure risks due to HIFSA's limited market share and Mettle's exclusive reliance on HIFSA for financing. No adverse public interest effects, including employment, were identified. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between The Housing Impact Fund South Africa Trust and Mettle Property Solutions Securitisation (RF) Proprietary Limited is approved without conditions.