Masstores (Pty) Ltd v Darryl Investments (Pty) Ltd (019067) [2014] ZACT 51 (4 August 2014)

Masstores (Pty) Ltd v Darryl Investments (Pty) Ltd (019067) [2014] ZACT 51 (4 August 2014)

The Tribunal found that the proposed transaction does not result in any horizontal overlap, as Darryl Investments only owns the properties exclusively occupied by Masstores and has no other tenants. The transaction leads to vertical integration, but Masstores has been the sole occupier since 1991 and will continue to occupy the properties exclusively. The Commission was satisfied that there are no vertical foreclosure concerns. There are no employment implications, as Darryl Investments has no employees and Massmart's employees are unaffected. No public interest issues arise. The transaction is therefore unlikely to substantially prevent or lessen competition in the relevant market, and...

Citation
[2014] ZACT 51
Parties
Applicant: Masstores (Pty) Ltd; Respondent: Darryl Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 August 2014
Case Number
019067
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger unconditionally approved.
Judges
Y Carrim, T Madima, A Ndoni
Legal Topics
Merger Notification, Vertical Integration, Public Interest, Market Definition
Competition Law Commercial and Corporate Merger Notification Vertical Integration Public Interest Market Definition

Case Brief

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Parties

Masstores (Pty) Ltd

Applicant

Darryl Investments (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the market for rentable B-Grade office space in the Sunninghill node.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in any horizontal overlap, as Darryl Investments only owns the properties exclusively occupied by Masstores and has no other tenants. The transaction leads to vertical integration, but Masstores has been the sole occupier since 1991 and will continue to occupy the properties exclusively. The Commission was satisfied that there are no vertical foreclosure concerns. There are no employment implications, as Darryl Investments has no employees and Massmart's employees are unaffected. No public interest issues arise. The transaction is therefore unlikely to substantially prevent or lessen competition in the relevant market, and...

Court Disposition

Merger unconditionally approved.

Orders

  • The proposed transaction is approved unconditionally.