Housing Impact Trust Fund South Africa v Rand Leases Securitisation (RF) (Pty) Ltd (020388) [2015] ZACT 139 (26 February 2015)

Housing Impact Trust Fund South Africa v Rand Leases Securitisation (RF) (Pty) Ltd (020388) [2015] ZACT 139 (26 February 2015)

The Tribunal found that the proposed transaction would not alter the market structure, as the applicant already exercised joint control over the target firm. The merged entity's estimated post-merger market share would be 7% in Boksburg and 10% in Roodepoort, which are not significant enough to raise competition concerns. The Tribunal accepted the Commission's assessment that competition from other private developers and government entities would persist. The vertical relationship, in which the applicant provides funding to the target, was found not to result in input foreclosure, as alternative sources of funding are available. No public interest concerns, including employment, were...

Citation
[2015] ZACT 139
Parties
Applicant: The Housing Impact Trust Fund South Africa; Respondent: Rand Leases Securitisation (RF) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 February 2015
Case Number
020388
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Norman Manoim, Medi Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationship, Input Foreclosure, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationship Input Foreclosure Public Interest Market Share Analysis

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Parties

The Housing Impact Trust Fund South Africa

Applicant

Rand Leases Securitisation (RF) (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the proposed transaction would not alter the market structure, as the applicant already exercised joint control over the target firm. The merged entity's estimated post-merger market share would be 7% in Boksburg and 10% in Roodepoort, which are not significant enough to raise competition concerns. The Tribunal accepted the Commission's assessment that competition from other private developers and government entities would persist. The vertical relationship, in which the applicant provides funding to the target, was found not to result in input foreclosure, as alternative sources of funding are available. No public interest concerns, including employment, were...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.