TP Hentiq 6159 (Pty) Ltd v Xeedan Property Portfolio (45/LM/Jun11) [2011] ZACT 75 (3 October 2011)

TP Hentiq 6159 (Pty) Ltd v Xeedan Property Portfolio (45/LM/Jun11) [2011] ZACT 75 (3 October 2011)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant property market. The only relevant overlap was in Grade A office space in Sandton and Environs, where the post-merger market share was low and the market remained competitive with many alternative providers. Customers retained significant countervailing power, being able to negotiate rents and switch offices easily. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Citation
[2011] ZACT 75
Parties
Applicant: TP Hentiq 6159 (Pty) Ltd; Respondent: Xeedan Property Portfolio
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 October 2011
Case Number
45/LM/Jun11
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Andreas Wessels, Yasmin Carrim
Legal Topics
Property Merger, Market Share Assessment, Horizontal Overlap, Public Interest, Competition Approval
Competition Law Commercial and Corporate Land and Property Property Merger Market Share Assessment Horizontal Overlap Public Interest Competition Approval

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Parties

TP Hentiq 6159 (Pty) Ltd

Applicant

Xeedan Property Portfolio

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed property merger would substantially prevent or lessen competition in the relevant property market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant property market. The only relevant overlap was in Grade A office space in Sandton and Environs, where the post-merger market share was low and the market remained competitive with many alternative providers. Customers retained significant countervailing power, being able to negotiate rents and switch offices easily. No public interest concerns were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.