Huawei Technologies South Africa (Pty) Ltd v Growthpoint Properties Limited; In re: Harrowdene Office Park (LM201Jan17) [2017] ZACT 11 (15 February 2017)

Huawei Technologies South Africa (Pty) Ltd v Growthpoint Properties Limited; In re: Harrowdene Office Park (LM201Jan17) [2017] ZACT 11 (15 February 2017)

The Tribunal found that the proposed transaction does not result in any horizontal overlaps, as Huawei SA does not own any Grade A office properties in South Africa. The acquisition is for Huawei SA's own operational use and not for property letting. The Commission confirmed that there are no negative public interest effects. Therefore, the transaction is unlikely to substantially prevent or lessen competition in any relevant market, and no public interest concerns arise. The Tribunal approved the transaction unconditionally.

Citation
[2017] ZACT 11
Parties
Applicant: Huawei Technologies South Africa (Pty) Ltd; Respondent: Growthpoint Properties Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 February 2017
Case Number
LM201Jan17
Procedural Posture
Merger Approval / Decision on Approval
Outcome
The merger is approved unconditionally.
Judges
Mondo Mazwai, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Sale of Letting Enterprise, Office Property Acquisition
Competition Law Commercial and Corporate Land and Property Merger Control Sale of Letting Enterprise Office Property Acquisition

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Parties

Huawei Technologies South Africa (Pty) Ltd

Applicant

Growthpoint Properties Limited

Respondent

Procedural Posture

Merger Approval / Decision on Approval

Legal Issues

  1. 1 Does the proposed acquisition of Harrowdene Office Park by Huawei Technologies South Africa (Pty) Ltd substantially prevent or lessen competition in any relevant market?
  2. 2 Are there any negative public interest effects arising from the transaction?

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal overlaps, as Huawei SA does not own any Grade A office properties in South Africa. The acquisition is for Huawei SA's own operational use and not for property letting. The Commission confirmed that there are no negative public interest effects. Therefore, the transaction is unlikely to substantially prevent or lessen competition in any relevant market, and no public interest concerns arise. The Tribunal approved the transaction unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction between Huawei Technologies South Africa (Pty) Ltd and Growthpoint Properties Limited in respect of Harrowdene Office Park is approved unconditionally.