Trustees for the Time Being of the CBS Property Trust and Growthpoint Properties Ltd (107/LM/Nov05) [2006] ZACT 19 (8 March 2006)

Trustees for the Time Being of the CBS Property Trust and Growthpoint Properties Ltd (107/LM/Nov05) [2006] ZACT 19 (8 March 2006)

The Tribunal found that there is no significant competition concern arising from the transaction. The analysis showed that where CBS and Growthpoint compete in the same class of property, there is no geographic overlap, and where they are active in the same geographic nodes, the class of property differs. The Tribunal also found no public interest issues that would alter its view. Accordingly, the merger was approved unconditionally.

Citation
[2006] ZACT 19
Parties
Applicant: The Trustees for the Time Being of the CBS Property Trust; Respondent: Growthpoint Properties Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 March 2006
Case Number
107/LM/Nov05
Procedural Posture
Large Merger / Merger Approval
Outcome
Merger approved unconditionally.
Judges
N Manoim, L Reyburn, M Mokuena
Legal Topics
Large Merger Review, Property Portfolio Acquisition, Market Overlap Analysis, Public Interest Consideration
Competition Law Commercial and Corporate Land and Property Large Merger Review Property Portfolio Acquisition Market Overlap Analysis Public Interest Consideration

Case Brief

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Parties

The Trustees for the Time Being of the CBS Property Trust

Applicant

Growthpoint Properties Ltd

Respondent

Procedural Posture

Large Merger / Merger Approval

Legal Issues

  1. 1 Does the acquisition of nine properties by CBS Property from Growthpoint raise any significant competition concerns?
  2. 2 Is there any geographic or product market overlap between the merging parties that could lessen competition?
  3. 3 Are there any public interest issues that would affect the approval of the merger?

Ratio Decidendi

The Tribunal found that there is no significant competition concern arising from the transaction. The analysis showed that where CBS and Growthpoint compete in the same class of property, there is no geographic overlap, and where they are active in the same geographic nodes, the class of property differs. The Tribunal also found no public interest issues that would alter its view. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between The Trustees for the Time Being of the CBS Property Trust and Growthpoint Properties Ltd is approved without conditions.