Twin City Western Cape (Pty) Ltd v Waterway House Section Two (Pty) Ltd (LM152Dec21) [2022] ZACT 15 (18 March 2022)

Twin City Western Cape (Pty) Ltd v Waterway House Section Two (Pty) Ltd (LM152Dec21) [2022] ZACT 15 (18 March 2022)

The Tribunal found that the proposed merger between Twin City Western Cape (Pty) Ltd and Waterway House Section Two (Pty) Ltd would not substantially prevent or lessen competition in any relevant market, as there is no geographic overlap between the Grade-P office properties of the merging firms. The closest office property owned by Twin City Group is located in Stellenbosch, far from the target property in the Waterfront node. No third party raised concerns, and the Commission's investigation confirmed the absence of competitive harm. Regarding public interest, the transaction would not result in job losses, and the spread of ownership would remain unaffected, as Growthpoint's black...

Citation
[2022] ZACT 15
Parties
Applicant: Twin City Western Cape (Pty) Ltd; Respondent: Waterway House Section Two (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 March 2022
Case Number
LM152Dec21
Procedural Posture
Large Merger Application / Approval
Outcome
The merger is unconditionally approved.
Judges
M Mazwai, T Vilakazi, F Tregenna
Legal Topics
Large Merger, Horizontal Overlap, Public Interest, Spread of Ownership
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Public Interest Spread of Ownership

Case Brief

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Parties

Twin City Western Cape (Pty) Ltd

Applicant

Waterway House Section Two (Pty) Ltd

Respondent

Procedural Posture

Large Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment and spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger between Twin City Western Cape (Pty) Ltd and Waterway House Section Two (Pty) Ltd would not substantially prevent or lessen competition in any relevant market, as there is no geographic overlap between the Grade-P office properties of the merging firms. The closest office property owned by Twin City Group is located in Stellenbosch, far from the target property in the Waterfront node. No third party raised concerns, and the Commission's investigation confirmed the absence of competitive harm. Regarding public interest, the transaction would not result in job losses, and the spread of ownership would remain unaffected, as Growthpoint's black...

Court Disposition

The merger is unconditionally approved.

Orders

  • The large merger between Twin City Western Cape (Pty) Ltd and Waterway House Section Two (Pty) Ltd is approved without conditions.