Transnet Soc Ltd v Certain Portions of the Durban International Airport held by the Airports Company South Africa Ltd (16/LM/Feb12) [2012] ZACT 26 (16 April 2012)

Transnet Soc Ltd v Certain Portions of the Durban International Airport held by the Airports Company South Africa Ltd (16/LM/Feb12) [2012] ZACT 26 (16 April 2012)

The Tribunal found that the proposed transaction results in a minor overlap in the market for rentable industrial property in Durban, with Transnet's post-merger market share below 10%. The intended use of the property for port development further reduces any horizontal competition concerns. No job losses or other public interest issues arise from the merger. Third party commercial interests, such as competing offers for the property, are not relevant to the competition or public interest assessment under the Act. Accordingly, the merger is unlikely to substantially prevent or lessen competition and does not raise public interest concerns.

Citation
[2012] ZACT 26
Parties
Applicant: Transnet Soc Limited; Respondent: Airports Company South Africa Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 April 2012
Case Number
16/LM/Feb12
Procedural Posture
Merger Application / Approval Hearing
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Taki Madima
Legal Topics
Merger Control, Public Interest, Horizontal Overlap, Property Acquisition
Competition Law Land and Property Merger Control Public Interest Horizontal Overlap Property Acquisition

Case Brief

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Parties

Transnet Soc Limited

Applicant

Airports Company South Africa Limited

Respondent

Procedural Posture

Merger Application / Approval Hearing

Legal Issues

  1. 1 Whether the proposed property transaction will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns under the Competition Act.
  3. 3 Whether third party commercial interests are relevant to the competition assessment.

Ratio Decidendi

The Tribunal found that the proposed transaction results in a minor overlap in the market for rentable industrial property in Durban, with Transnet's post-merger market share below 10%. The intended use of the property for port development further reduces any horizontal competition concerns. No job losses or other public interest issues arise from the merger. Third party commercial interests, such as competing offers for the property, are not relevant to the competition or public interest assessment under the Act. Accordingly, the merger is unlikely to substantially prevent or lessen competition and does not raise public interest concerns.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.