Rebosis Property Fund Limited v Billion Group Proprietary Limited (LM053JUL16) [2016] ZACT 81 (7 September 2016)

Rebosis Property Fund Limited v Billion Group Proprietary Limited (LM053JUL16) [2016] ZACT 81 (7 September 2016)

The Tribunal found that there is no significant geographic overlap between the merging parties' properties in the Eastern Cape and Gauteng. In Gauteng, the closest properties are approximately 30 km apart and are constrained by other competitive centres. Even within a hypothetical 30 km radius, the post-merger market share remains below 15%. The Tribunal concurred with the Commission's finding that the transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merger does not raise any public interest concerns, including employment. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2016] ZACT 81
Parties
Applicant: Rebosis Property Fund Limited; Respondent: Billion Group Proprietary Limited; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 September 2016
Case Number
LM053JUL16
Procedural Posture
Large Merger Review / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
AW Wessels, Medi Mokuena, Andiswa Ndoni
Legal Topics
Large Merger Review, Horizontal Overlap, Market Definition, Public Interest, Market Share Analysis
Competition Law Large Merger Review Horizontal Overlap Market Definition Public Interest Market Share Analysis

Case Brief

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Parties

Rebosis Property Fund Limited

Applicant

Billion Group Proprietary Limited

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger between Rebosis Property Fund Limited and Billion Group Proprietary Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that there is no significant geographic overlap between the merging parties' properties in the Eastern Cape and Gauteng. In Gauteng, the closest properties are approximately 30 km apart and are constrained by other competitive centres. Even within a hypothetical 30 km radius, the post-merger market share remains below 15%. The Tribunal concurred with the Commission's finding that the transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merger does not raise any public interest concerns, including employment. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The large merger between Rebosis Property Fund Limited and Billion Group Proprietary Limited is approved unconditionally.