Redefine Properties Limited v Macsteel Genprop (Pty) Ltd and Another (019406) [2014] ZACT 65 (3 October 2014)

Redefine Properties Limited v Macsteel Genprop (Pty) Ltd and Another (019406) [2014] ZACT 65 (3 October 2014)

The Tribunal found that the proposed transaction resulted in only a single overlap in the market for rental space in heavy industrial property in the Germiston and surroundings node. The merged entity's market share would be below 5%, and the transaction would not alter the structure of the market. There were no...

Source-derived case information.

Citation
[2014] ZACT 65
Parties
Applicant: Redefine Properties Limited; Respondent: Macsteel Genprop (Pty) Ltd; Respondent: Macsteel Coreprop (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 October 2014
Case Number
019406
Procedural Posture
Merger Approval / Final Determination
Outcome
The merger was approved unconditionally.
Judges
Yasmin Carrim, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Market Definition, Public Interest Considerations
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Considerations

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Parties

Redefine Properties Limited

Applicant

Macsteel Genprop (Pty) Ltd

Respondent

Macsteel Coreprop (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of heavy industrial properties by Redefine Properties Limited from Macsteel Genprop (Pty) Ltd and Macsteel Coreprop (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any significant public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction resulted in only a single overlap in the market for rental space in heavy industrial property in the Germiston and surroundings node. The merged entity's market share would be below 5%, and the transaction would not alter the structure of the market. There were no adverse public interest effects, including no impact on employment. Accordingly, the Tribunal concluded that the transaction was unlikely to substantially prevent or lessen competition in the relevant market and approved the transaction unconditionally.

Court Disposition

The merger was approved unconditionally.

Orders

  • The acquisition by Redefine Properties Limited of 28 heavy industrial properties from Macsteel Genprop (Pty) Ltd and Macsteel Coreprop (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the transaction.