RMB Holdings Limited v Property Development Proprietary Limited (LM095Aug16) [2016] ZACT 94 (14 November 2016)

RMB Holdings Limited v Property Development Proprietary Limited (LM095Aug16) [2016] ZACT 94 (14 November 2016)

The Tribunal found that although there are horizontal overlaps in the markets for retail space in convenience centres, Grade A and Grade B office property, and short-term accommodation in the Johannesburg CBD and surrounding areas, the post-merger market shares are low and the presence of strong competitors will constrain the merged entity. The Commission's analysis showed market shares of 18.51% (retail space), 2.34% (office property), and 17.1% (short-term accommodation), with minimal accretion. The merged entity will continue to face competition from numerous other firms in each market. No public interest concerns were identified. Therefore, the merger is unlikely to substantially...

Citation
[2016] ZACT 94
Parties
Applicant: RMB Holdings Limited; Respondent: Propertuity Development Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 November 2016
Case Number
LM095Aug16
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved without conditions.
Judges
Mondo Mazwai, Medi Mokuena, lmraan Valodia
Legal Topics
Large Merger, Horizontal Overlap, Market Share Analysis, Public Interest, Competition Act Section 12
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Market Share Analysis Public Interest Competition Act Section 12

Case Brief

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Parties

RMB Holdings Limited

Applicant

Propertuity Development Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Does the proposed merger between RMB Holdings Limited and Propertuity Development Proprietary Limited substantially prevent or lessen competition in the relevant markets?
  2. 2 Are there any public interest concerns arising from the merger?

Ratio Decidendi

The Tribunal found that although there are horizontal overlaps in the markets for retail space in convenience centres, Grade A and Grade B office property, and short-term accommodation in the Johannesburg CBD and surrounding areas, the post-merger market shares are low and the presence of strong competitors will constrain the merged entity. The Commission's analysis showed market shares of 18.51% (retail space), 2.34% (office property), and 17.1% (short-term accommodation), with minimal accretion. The merged entity will continue to face competition from numerous other firms in each market. No public interest concerns were identified. Therefore, the merger is unlikely to substantially...

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between RMB Holdings Limited and Propertuity Development Proprietary Limited is approved without conditions.