Housing Impact South Africa v Rand Leases Securitisation (01/LM/Jan11) [2011] ZACT 24 (3 May 2011)

Housing Impact South Africa v Rand Leases Securitisation (01/LM/Jan11) [2011] ZACT 24 (3 May 2011)

The Tribunal found that the transaction does not result in a horizontal overlap between the parties' activities, but does create a vertical relationship as HIFSA will provide finance to Rand Leases Securitisation. However, the existence of multiple competitors in both the finance and development markets ensures that foreclosure concerns are not significant. The transaction does not substantially prevent or lessen competition, and there are no significant public interest issues arising from the merger. Accordingly, the Tribunal approved the transaction.

Citation
[2011] ZACT 24
Parties
Applicant: Housing Impact South Africa; Respondent: Rand Leases Securitisation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 May 2011
Case Number
01/LM/Jan11
Procedural Posture
Merger Control / Approval
Outcome
The merger is approved without conditions.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Merger Control, Vertical Integration, Public Interest, Foreclosure Concerns
Competition Law Commercial and Corporate Merger Control Vertical Integration Public Interest Foreclosure Concerns

Case Brief

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Parties

Housing Impact South Africa

Applicant

Rand Leases Securitisation

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises significant public interest concerns.

Ratio Decidendi

The Tribunal found that the transaction does not result in a horizontal overlap between the parties' activities, but does create a vertical relationship as HIFSA will provide finance to Rand Leases Securitisation. However, the existence of multiple competitors in both the finance and development markets ensures that foreclosure concerns are not significant. The transaction does not substantially prevent or lessen competition, and there are no significant public interest issues arising from the merger. Accordingly, the Tribunal approved the transaction.

Court Disposition

The merger is approved without conditions.

Orders

  • The acquisition by Housing Impact Fund South Africa of Rand Leases Securitisation (Pty) Ltd is approved.
  • No conditions are attached to the approval.