Rebosis Property Fund Limited v Tupelo Properties Property Limited in respect of the property letting enterprises known as 11 Diagonal Street and West Street Parkade (LM102Aug15) [2015] ZACT 119 (8 September 2015)

Rebosis Property Fund Limited v Tupelo Properties Property Limited in respect of the property letting enterprises known as 11 Diagonal Street and West Street Parkade (LM102Aug15) [2015] ZACT 119 (8 September 2015)

The Tribunal found that although there is a horizontal overlap in the provision of rentable space in convenience centres and Grade A and B office property in the Johannesburg CBD and surrounding node, the merged entity's market share remains low, below 15%. There is no geographic overlap in convenience centres, and the transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, there are no adverse effects on employment or other public interest concerns. The merger is therefore approved unconditionally.

Citation
[2015] ZACT 119
Parties
Applicant: Rebosis Property Fund Limited; Respondent: Tupelo Properties Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 September 2015
Case Number
LM102Aug15
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The merger is approved unconditionally.
Judges
Andreas Wessels, lmraan Valodia, Medi Mokuena
Legal Topics
Large Merger, Horizontal Overlap, Market Share Analysis, Public Interest, Unconditional Approval
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Market Share Analysis Public Interest Unconditional Approval

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Parties

Rebosis Property Fund Limited

Applicant

Tupelo Properties Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed merger raises any public interest concerns.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap in the provision of rentable space in convenience centres and Grade A and B office property in the Johannesburg CBD and surrounding node, the merged entity's market share remains low, below 15%. There is no geographic overlap in convenience centres, and the transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, there are no adverse effects on employment or other public interest concerns. The merger is therefore approved unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The large merger between Rebosis Property Fund Limited and Tupelo Properties Proprietary Limited in respect of the property letting enterprises known as 11 Diagonal Street and West Street Parkade is approved without conditions.