Investec Property Fund Limited v Certain property-owning companies and properties controlled by Investec Property (Pty) Ltd (020214) [2015] ZACT 21 (16 March 2015)

Investec Property Fund Limited v Certain property-owning companies and properties controlled by Investec Property (Pty) Ltd (020214) [2015] ZACT 21 (16 March 2015)

The Tribunal found that although there were horizontal overlaps between the merging parties in certain property markets, the merged entity's market share would remain below 15% in each relevant market. No vertical competition issues were identified. The Tribunal took no definitive view on whether Grade A and Grade P office space constituted the same or separate product markets, but concluded that even if considered separately, the merger would not raise significant competition concerns. The merging parties confirmed that there would be no adverse impact on employment, and no other public interest concerns were raised. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2015] ZACT 21
Parties
Applicant: Investec Property Fund Limited; Respondent: Certain property-owning companies and properties controlled by Investec Property (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 March 2015
Case Number
020214
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Mondo Mazwai
Legal Topics
Horizontal Merger, Market Share Analysis, Public Interest, Vertical Relationships, Unconditional Approval
Competition Law Horizontal Merger Market Share Analysis Public Interest Vertical Relationships Unconditional Approval

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Parties

Investec Property Fund Limited

Applicant

Certain property-owning companies and properties controlled by Investec Property (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.
  3. 3 Whether there are any vertical competition issues arising from the transaction.

Ratio Decidendi

The Tribunal found that although there were horizontal overlaps between the merging parties in certain property markets, the merged entity's market share would remain below 15% in each relevant market. No vertical competition issues were identified. The Tribunal took no definitive view on whether Grade A and Grade P office space constituted the same or separate product markets, but concluded that even if considered separately, the merger would not raise significant competition concerns. The merging parties confirmed that there would be no adverse impact on employment, and no other public interest concerns were raised. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.