Orviscene Proprietary Limited v Makrogate Limited (LM166Dec20) [2021] ZACT 2 (6 January 2021)

Orviscene Proprietary Limited v Makrogate Limited (LM166Dec20) [2021] ZACT 2 (6 January 2021)

The Tribunal found that the proposed transaction would not result in a substantial lessening or prevention of competition in the market for rentable retail property in Brackenfell and surrounding areas, as the merged entity's market share would remain below 10% and there are sufficient alternatives available. Furthermore, the transaction would not negatively affect employment, as neither party has employees, and no other public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2021] ZACT 2
Parties
Applicant: Orviscene Proprietary Limited; Respondent: Makrogate Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 January 2021
Case Number
LM166Dec20
Procedural Posture
Merger Application / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
M Mazwai, E Daniels, A Wessels
Legal Topics
Merger Control, Retail Property Market, Market Share Analysis, Public Interest, Employment Impact
Competition Law Land and Property Merger Control Retail Property Market Market Share Analysis Public Interest Employment Impact

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Parties

Orviscene Proprietary Limited

Applicant

Makrogate Limited

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Does the proposed acquisition substantially prevent or lessen competition in the relevant market?
  2. 2 Does the transaction raise any public interest concerns, including employment effects?
  3. 3 Is there a significant product overlap or market concentration resulting from the merger?

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial lessening or prevention of competition in the market for rentable retail property in Brackenfell and surrounding areas, as the merged entity's market share would remain below 10% and there are sufficient alternatives available. Furthermore, the transaction would not negatively affect employment, as neither party has employees, and no other public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Orviscene Proprietary Limited and Makrogate Limited is approved without conditions.