Sanlam Life Insurance Limited v Ingenuity Property Investment (Pty) Ltd in respect of five immovable properties and letting enterprises situated in Century City (LM063May18) [2018] ZACT 59 (13 August 2018)

Sanlam Life Insurance Limited v Ingenuity Property Investment (Pty) Ltd in respect of five immovable properties and letting enterprises situated in Century City (LM063May18) [2018] ZACT 59 (13 August 2018)

The Tribunal found that the proposed transaction would not result in a horizontal overlap in the provision of rental and office space, nor would it create any vertical overlap. The properties of the merging parties are located in distinct nodes, with a significant price difference and intervening property nodes, making tenant switching between the areas unlikely. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition in any relevant market. Furthermore, there were no adverse public interest effects, including on employment. The Tribunal concurred with the Commission's findings and approved the transaction unconditionally.

Citation
[2018] ZACT 59
Parties
Applicant: Sanlam Life Insurance Limited; Respondent: Ingenuity Property Investment (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 August 2018
Case Number
LM063May18
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Enver Daniels, Yasmin Carrim
Legal Topics
Merger Control, Property Investment, Public Interest, Horizontal Overlap, Vertical Overlap
Competition Law Commercial and Corporate Merger Control Property Investment Public Interest Horizontal Overlap Vertical Overlap

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Parties

Sanlam Life Insurance Limited

Applicant

Ingenuity Property Investment (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed transaction will substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a horizontal overlap in the provision of rental and office space, nor would it create any vertical overlap. The properties of the merging parties are located in distinct nodes, with a significant price difference and intervening property nodes, making tenant switching between the areas unlikely. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition in any relevant market. Furthermore, there were no adverse public interest effects, including on employment. The Tribunal concurred with the Commission's findings and approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Sanlam Life Insurance Limited and Ingenuity Property Investment (Pty) Ltd in respect of five immovable properties and letting enterprises situated in Century City is approved unconditionally.