Sanlam Life Insurance Limited v The Main Straight (Pty) Ltd in respect of the Main Straight Office Park (LM324Mar18) [2018] ZACT 17 (30 May 2018)

Sanlam Life Insurance Limited v The Main Straight (Pty) Ltd in respect of the Main Straight Office Park (LM324Mar18) [2018] ZACT 17 (30 May 2018)

The Tribunal found that although there is a horizontal overlap in the provision of rentable Grade P office space, there is no geographic overlap between the properties owned by the merging parties. The precise delineation of the relevant geographic market was left open due to lack of customer substitution data. However, the acquiring group is a relatively small player in the area, and the merged entity's market share would be below 5% in the broader Sandton and surrounds. No adverse effect on employment or other public interest concerns were identified. Therefore, the transaction is unlikely to substantially prevent or lessen competition or raise public interest issues, and unconditional...

Citation
[2018] ZACT 17
Parties
Applicant: Sanlam Life Insurance Limited; Respondent: The Main Straight (Pty) Ltd in respect of the Main Straight Office Park
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 May 2018
Case Number
LM324Mar18
Procedural Posture
Merger Review / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
AW Wessels, E Daniels, F Tregenna
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Public Interest
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Definition Public Interest

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Parties

Sanlam Life Insurance Limited

Applicant

The Main Straight (Pty) Ltd in respect of the Main Straight Office Park

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the market for rentable Grade P office space.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap in the provision of rentable Grade P office space, there is no geographic overlap between the properties owned by the merging parties. The precise delineation of the relevant geographic market was left open due to lack of customer substitution data. However, the acquiring group is a relatively small player in the area, and the merged entity's market share would be below 5% in the broader Sandton and surrounds. No adverse effect on employment or other public interest concerns were identified. Therefore, the transaction is unlikely to substantially prevent or lessen competition or raise public interest issues, and unconditional...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Sanlam Life Insurance Limited and The Main Straight (Pty) Ltd in respect of the Main Straight Office Park is approved without conditions.