KZN Pension House (Pty) Ltd v Vividend Income Fund (LM113Sep22) [2022] ZACT 105 (29 November 2022)

KZN Pension House (Pty) Ltd v Vividend Income Fund (LM113Sep22) [2022] ZACT 105 (29 November 2022)

The Tribunal found that the proposed transaction does not result in a horizontal or vertical overlap in the market for rentable Grade A office space in Durban CBD. The acquiring group's post-merger market share will increase from 0.0% to 0.88%, which is not significant. No third parties raised concerns, and there is no evidence that the relevant market should be broader than defined. The transaction will not result in retrenchments, as there are no employees at SARS Durban, and management staff will be relocated within Excellerate Real Estate Services. The change in control will increase ownership by historically disadvantaged persons, as the acquiring group is controlled by MSM...

Citation
[2022] ZACT 105
Parties
Applicant: KZN Pension House (Pty) Ltd; Respondent: Vividend Income Fund
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 November 2022
Case Number
LM113Sep22
Procedural Posture
Large Merger / Approval
Outcome
The merger is approved unconditionally.
Judges
Shaista Goga, Andiswa Ndoni, Mondo Mazwai
Legal Topics
Large Merger Review, Public Interest Considerations, Spread of Ownership, Employment Effects, Market Definition, Horizontal Overlap
Competition Law Large Merger Review Public Interest Considerations Spread of Ownership Employment Effects Market Definition Horizontal Overlap

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Parties

KZN Pension House (Pty) Ltd

Applicant

Vividend Income Fund

Respondent

Procedural Posture

Large Merger / Approval

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 will have adverse effects on employment.
  3. 3 Whether the transaction promotes a greater spread of ownership by historically disadvantaged persons.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in a horizontal or vertical overlap in the market for rentable Grade A office space in Durban CBD. The acquiring group's post-merger market share will increase from 0.0% to 0.88%, which is not significant. No third parties raised concerns, and there is no evidence that the relevant market should be broader than defined. The transaction will not result in retrenchments, as there are no employees at SARS Durban, and management staff will be relocated within Excellerate Real Estate Services. The change in control will increase ownership by historically disadvantaged persons, as the acquiring group is controlled by MSM...

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.