Investec Bank Limited v Growthpoint Properties Limited in respect of the property known as 100 Grayston Drive and Merchant Place Parkade Share Block (Pty) Ltd (LM296Mar18) [2018] ZACT 14; [2018] 1 CPLR 257 (CT) (27 March 2018)

Investec Bank Limited v Growthpoint Properties Limited in respect of the property known as 100 Grayston Drive and Merchant Place Parkade Share Block (Pty) Ltd (LM296Mar18) [2018] ZACT 14; [2018] 1 CPLR 257 (CT) (27 March 2018)

The Tribunal found that the proposed transaction would not result in any substantial prevention or lessening of competition in the market for rentable Grade P office space in Sandton and surrounding nodes. The merged entity would have a low market share and face significant competition. The property will continue to be used by Investec for its own purposes and will not be available to third parties, further reducing any competitive impact. The Commission's analysis confirmed that there are no adverse public interest concerns, including employment. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2018] ZACT 14
Parties
Applicant: Investec Bank Limited; Respondent: Growthpoint Properties Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 March 2018
Case Number
LM296Mar18
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
E Daniels, M Mokuena, I Valodia
Legal Topics
Large Merger, Market Definition, Public Interest, Horizontal Assessment
Commercial and Corporate Competition Law Large Merger Market Definition Public Interest Horizontal Assessment

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2
Sign in to unlock

Parties

Investec Bank Limited

Applicant

Growthpoint Properties Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of the property and share block by Investec Bank Limited will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in any substantial prevention or lessening of competition in the market for rentable Grade P office space in Sandton and surrounding nodes. The merged entity would have a low market share and face significant competition. The property will continue to be used by Investec for its own purposes and will not be available to third parties, further reducing any competitive impact. The Commission's analysis confirmed that there are no adverse public interest concerns, including employment. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Investec Bank Limited and Growthpoint Properties Limited in respect of the property known as 100 Grayston Drive and Merchant Place Parkade Share Block (Pty) Ltd is approved unconditionally.