Redefine Properties Limited v Respublica Student Living (Pty) Ltd (LM087Jul15) [2015] ZACT 116 (7 September 2015)

Redefine Properties Limited v Respublica Student Living (Pty) Ltd (LM087Jul15) [2015] ZACT 116 (7 September 2015)

The Tribunal found that there was no horizontal overlap between the activities of Redefine Properties Limited and Respublica Student Living (Pty) Ltd, as Redefine did not own any student accommodation. The only vertical relationship identified was RSL's rental of office space from Redefine, which existed prior to the merger and would remain unchanged. The Tribunal agreed with the Commission's assessment that this vertical relationship was unlikely to result in foreclosure concerns. Furthermore, the merger would not result in any job losses or retrenchments, and thus did not raise any public interest concerns. On this basis, the Tribunal concluded that the proposed transaction was unlikely...

Citation
[2015] ZACT 116
Parties
Applicant: Redefine Properties Limited; Respondent: Respublica Student Living (Pty) Ltd; Respondent: Bridgehead Real Estate Fund (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 September 2015
Case Number
LM087Jul15
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
Y Carrim, M Mokuena, I Valodia
Legal Topics
Merger Control, Vertical Relationships, Student Accommodation Market
Competition Law Commercial and Corporate Merger Control Vertical Relationships Student Accommodation Market

Case Brief

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Parties

Redefine Properties Limited

Applicant

Respublica Student Living (Pty) Ltd

Respondent

Bridgehead Real Estate Fund (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of 51% of RSL by Redefine Properties Limited will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including job losses or retrenchments.

Ratio Decidendi

The Tribunal found that there was no horizontal overlap between the activities of Redefine Properties Limited and Respublica Student Living (Pty) Ltd, as Redefine did not own any student accommodation. The only vertical relationship identified was RSL's rental of office space from Redefine, which existed prior to the merger and would remain unchanged. The Tribunal agreed with the Commission's assessment that this vertical relationship was unlikely to result in foreclosure concerns. Furthermore, the merger would not result in any job losses or retrenchments, and thus did not raise any public interest concerns. On this basis, the Tribunal concluded that the proposed transaction was unlikely...

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Redefine Properties Limited of 51% of the issued share capital of Respublica Student Living (Pty) Ltd from Bridgehead Real Estate Fund (Pty) Ltd is approved unconditionally.