Indluplace Properties Limited v Diluculo Properties Proprietary Limited (LM023Apr17) [2017] ZACT 14 (26 June 2017)

Indluplace Properties Limited v Diluculo Properties Proprietary Limited (LM023Apr17) [2017] ZACT 14 (26 June 2017)

The Tribunal found that the proposed transaction presents a horizontal overlap in the market for rentable space in affordable housing property. However, based on market share estimates and competitor feedback, the merging parties' combined market share in each affected geographic area would be less than 10%. The Tribunal noted that only a small increment in market share would result from the merger and that sufficient alternative affordable housing options would remain available. No adverse public interest concerns, including employment effects, were identified. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant...

Citation
[2017] ZACT 14
Parties
Applicant: Indluplace Properties Limited; Respondent: Diluculo Properties Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 June 2017
Case Number
LM023Apr17
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
AW Wessels, M Mazwai, I Valodia
Legal Topics
Large Merger, Market Concentration, Horizontal Overlap, Public Interest, Affordable Housing Market
Competition Law Commercial and Corporate Large Merger Market Concentration Horizontal Overlap Public Interest Affordable Housing Market

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Parties

Indluplace Properties Limited

Applicant

Diluculo Properties Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger between Indluplace Properties and Diluculo Properties is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any adverse public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction presents a horizontal overlap in the market for rentable space in affordable housing property. However, based on market share estimates and competitor feedback, the merging parties' combined market share in each affected geographic area would be less than 10%. The Tribunal noted that only a small increment in market share would result from the merger and that sufficient alternative affordable housing options would remain available. No adverse public interest concerns, including employment effects, were identified. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Indluplace Properties Limited and Diluculo Properties Proprietary Limited is approved unconditionally.