Redefine Properties Limited v Setso Property Fund (Pty) Ltd (LM070Jul22) [2022] ZACT 78 (30 August 2022)

Redefine Properties Limited v Setso Property Fund (Pty) Ltd (LM070Jul22) [2022] ZACT 78 (30 August 2022)

The Tribunal found that the proposed transaction results in a horizontal product overlap, as both merging parties own Grade P office properties. However, there is no geographic overlap, since Redefine does not own Grade P office space in Vorna Valley, Midrand, where the target property is located. The Commission and Tribunal found no evidence of a pre-existing relationship or vertical overlap. No third parties raised concerns, and the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition in any market. Regarding public interest, the transaction will not result in retrenchments, and the dilution of HDP shareholding is not significant given...

Citation
[2022] ZACT 78
Parties
Applicant: Redefine Properties Limited; Respondent: Setso Property Fund (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 August 2022
Case Number
LM070Jul22
Procedural Posture
Merger Approval / Final Decision
Outcome
The merger is approved unconditionally.
Judges
Imraan I. Valodia, Yasmin Carrim, Vilakazi Thando
Legal Topics
Large Merger, Horizontal Overlap, Public Interest, Spread of Ownership, Employment Effects
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Public Interest Spread of Ownership Employment Effects

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Parties

Redefine Properties Limited

Applicant

Setso Property Fund (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition of a one-third undivided share in Hertford Office Park by Redefine Properties Limited from Setso Property Fund (Pty) Ltd is likely to substantially prevent or lessen competition in any market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment and the spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed transaction results in a horizontal product overlap, as both merging parties own Grade P office properties. However, there is no geographic overlap, since Redefine does not own Grade P office space in Vorna Valley, Midrand, where the target property is located. The Commission and Tribunal found no evidence of a pre-existing relationship or vertical overlap. No third parties raised concerns, and the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition in any market. Regarding public interest, the transaction will not result in retrenchments, and the dilution of HDP shareholding is not significant given...

Court Disposition

The merger is approved unconditionally.

Orders

  • The large merger between Redefine Properties Limited and Setso Property Fund (Pty) Ltd is approved without conditions.