Sasol Pension Fund v An undivided half share in property owned by the Elixir Trust (017103) [2013] ZACT 87 (8 August 2013)

Sasol Pension Fund v An undivided half share in property owned by the Elixir Trust (017103) [2013] ZACT 87 (8 August 2013)

The Tribunal found that there is no overlap in the activities of Sasol Pension Fund and the target property in relation to vacant property or rentable P-grade office property within the Sandton node. Even considering a broader market including both A- and P-grade office property, the merging parties' combined post-merger market share remains relatively small. The property will be leased exclusively to Sasol for a substantial period, meaning it will not be available to third parties, and thus the transaction does not alter the competitive structure of the market. Any overlap in B-grade office property is geographically separated, and even if the geographic market is broadened, the merger...

Citation
[2013] ZACT 87
Parties
Applicant: Sasol Pension Fund; Respondent: Elixir Trust
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 August 2013
Case Number
017103
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved unconditionally.
Judges
Andreas Wessels, Andiswa Ndoni, Anton Roskam
Legal Topics
Merger Control, Office Property Market Definition, Public Interest Assessment
Competition Law Land and Property Merger Control Office Property Market Definition Public Interest Assessment

Case Brief

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Parties

Sasol Pension Fund

Applicant

Elixir Trust

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of a half share in property by Sasol Pension Fund from the Elixir Trust is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impacts.

Ratio Decidendi

The Tribunal found that there is no overlap in the activities of Sasol Pension Fund and the target property in relation to vacant property or rentable P-grade office property within the Sandton node. Even considering a broader market including both A- and P-grade office property, the merging parties' combined post-merger market share remains relatively small. The property will be leased exclusively to Sasol for a substantial period, meaning it will not be available to third parties, and thus the transaction does not alter the competitive structure of the market. Any overlap in B-grade office property is geographically separated, and even if the geographic market is broadened, the merger...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed acquisition by Sasol Pension Fund of an undivided half share in property owned by the Elixir Trust is approved unconditionally.