Mendo Property Proprietary Limited v Vukile Property Fund Limited (LM037JUN16) [2016] ZACT 78 (6 September 2016)

Mendo Property Proprietary Limited v Vukile Property Fund Limited (LM037JUN16) [2016] ZACT 78 (6 September 2016)

The Tribunal found that the proposed transaction resulted in a horizontal overlap in three markets for rentable office and retail property: Grade B and C office property in the Pretoria CBD and surrounding node, Grade B and C office property in the Bloemfontein node, and retail space in convenience centres within a 5km radius of the merging parties. The Commission determined that the merged entity's post-merger market share would range between 9% and 18% in these markets and that sufficient competition would remain due to the presence of other market players. The Tribunal concurred with the Commission's conclusion that the transaction was unlikely to substantially prevent or lessen...

Citation
[2016] ZACT 78
Parties
Applicant: Mendo Property Proprietary Limited; Respondent: Vukile Property Fund Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 September 2016
Case Number
LM037JUN16
Procedural Posture
Merger Review / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Andreas Wessels, Fiona Tregenna
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Employment Effects
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Share Analysis Public Interest Employment Effects

Case Brief

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Parties

Mendo Property Proprietary Limited

Applicant

Vukile Property Fund Limited

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of five target properties by Mendo Property Proprietary Limited from Vukile Property Fund Limited is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction resulted in a horizontal overlap in three markets for rentable office and retail property: Grade B and C office property in the Pretoria CBD and surrounding node, Grade B and C office property in the Bloemfontein node, and retail space in convenience centres within a 5km radius of the merging parties. The Commission determined that the merged entity's post-merger market share would range between 9% and 18% in these markets and that sufficient competition would remain due to the presence of other market players. The Tribunal concurred with the Commission's conclusion that the transaction was unlikely to substantially prevent or lessen...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Mendo Property Proprietary Limited and Vukile Property Fund Limited in respect of the five target properties is approved without conditions.