Macsteel Services Centres SA (Pty) Ltd v Samson Property Investments SA (Pty) Ltd (52/LM/May12) [2012] ZACT 50 (9 July 2012)

Macsteel Services Centres SA (Pty) Ltd v Samson Property Investments SA (Pty) Ltd (52/LM/May12) [2012] ZACT 50 (9 July 2012)

The Tribunal found that the proposed transaction involves both horizontal and vertical elements in the property market, specifically concerning rentable light industrial properties in the Germiston and Boksburg nodes. The combined post-merger market shares are low (3.79% in Germiston and 2.59% in Boksburg), and the properties have always been used exclusively by the acquiring firm. The transaction does not alter the competitive dynamics, as there are no other tenants and no foreclosure concerns. The Tribunal concluded that the merger does not raise any horizontal or vertical competition concerns and is unlikely to substantially prevent or lessen competition. No public interest issues were...

Citation
[2012] ZACT 50
Parties
Applicant: Macsteel Services Centres SA (Pty) Ltd; Respondent: Samson Property Investments SA (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 July 2012
Case Number
52/LM/May12
Procedural Posture
Merger Control / Approval
Outcome
The merger is unconditionally approved.
Judges
Norman Manoim, Yasmin Carrim, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Merger Analysis, Vertical Merger Analysis, Market Share Calculation
Competition Law Land and Property Merger Control Horizontal Merger Analysis Vertical Merger Analysis Market Share Calculation

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Parties

Macsteel Services Centres SA (Pty) Ltd

Applicant

Samson Property Investments SA (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the relevant property market.
  2. 2 Whether the transaction raises any horizontal or vertical competition concerns.
  3. 3 Whether there are any public interest issues arising from the merger.

Ratio Decidendi

The Tribunal found that the proposed transaction involves both horizontal and vertical elements in the property market, specifically concerning rentable light industrial properties in the Germiston and Boksburg nodes. The combined post-merger market shares are low (3.79% in Germiston and 2.59% in Boksburg), and the properties have always been used exclusively by the acquiring firm. The transaction does not alter the competitive dynamics, as there are no other tenants and no foreclosure concerns. The Tribunal concluded that the merger does not raise any horizontal or vertical competition concerns and is unlikely to substantially prevent or lessen competition. No public interest issues were...

Court Disposition

The merger is unconditionally approved.

Orders

  • The proposed transaction between Macsteel Services Centres SA (Pty) Ltd and Samson Property Investments SA (Pty) Ltd is approved without conditions.