Redefine Properties Ltd v Grapnel Property Investments Pty Ltd in respect of the property letting enterprise known as Ericsson Building (018424) [2014] ZACT 26 (13 February 2014)

Redefine Properties Ltd v Grapnel Property Investments Pty Ltd in respect of the property letting enterprise known as Ericsson Building (018424) [2014] ZACT 26 (13 February 2014)

The Tribunal found that the proposed merger would not result in any substantial prevention or lessening of competition in the market for rentable Grade A office space in the Woodmead node, Gauteng, as the merged entity's post-merger market share would be less than 6%. Significant competition from other property owners such as Growthpoint, Acucap, and Investec would remain. In the retail space market, the transaction would not negatively affect competition due to the differing categorisation of the properties involved. The Tribunal further noted that the sole tenant, Ericsson, occupies the entire building and has sufficient bargaining power to negotiate lease terms, mitigating any risk of...

Citation
[2014] ZACT 26
Parties
Applicant: Redefine Properties Limited; Respondent: Grapnel Property Investments Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2014
Case Number
018424
Procedural Posture
Merger Approval / Decision
Outcome
Merger approved without conditions.
Judges
N Manoim, T Madima, M Mokuena
Legal Topics
Horizontal Merger, Market Share Analysis, Public Interest, Office Space Market, Retail Space Market
Competition Law Commercial and Corporate Land and Property Horizontal Merger Market Share Analysis Public Interest Office Space Market Retail Space Market

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Redefine Properties Limited

Applicant

Grapnel Property Investments Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Decision

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether the single tenant's bargaining power mitigates any potential anti-competitive effects.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in any substantial prevention or lessening of competition in the market for rentable Grade A office space in the Woodmead node, Gauteng, as the merged entity's post-merger market share would be less than 6%. Significant competition from other property owners such as Growthpoint, Acucap, and Investec would remain. In the retail space market, the transaction would not negatively affect competition due to the differing categorisation of the properties involved. The Tribunal further noted that the sole tenant, Ericsson, occupies the entire building and has sufficient bargaining power to negotiate lease terms, mitigating any risk of...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Redefine Properties Limited and Grapnel Property Investments Proprietary Limited in respect of the Ericsson Building is approved without conditions.