Unico Property Partners (Pty) Ltd v Khumonetix (Pty) Ltd in Respect of 6 Industrial Properties (LM154Dec22) [2023] ZACT 12 (22 March 2023)

Unico Property Partners (Pty) Ltd v Khumonetix (Pty) Ltd in Respect of 6 Industrial Properties (LM154Dec22) [2023] ZACT 12 (22 March 2023)

The Tribunal found that the proposed merger would result in a horizontal overlap in the market for rentable light industrial property, but the estimated market share of the target properties is low and there are numerous alternative properties in the relevant geographic area. The only potential overlap, involving vacant land owned by Nedbank, was found not to raise horizontal concerns. The Tribunal accepted the submissions that there would be no exchange of competitively sensitive information between competitors, as Vukile Property Fund is not a competitor in the relevant market and its directors would not be involved in Unico post-merger. No third parties raised concerns. On public...

Citation
[2023] ZACT 12
Parties
Applicant: Unico Property Partners Proprietary Limited; Respondent: Khumonetix Proprietary Limited in Respect of 6 Industrial Properties
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 March 2023
Case Number
LM154Dec22
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved unconditionally.
Judges
Jerome Wilson, Tregenna Fiona, Imraan Valodia
Legal Topics
Large Merger Review, Horizontal Overlap, Public Interest, Black Economic Empowerment, Employment Effects
Competition Law Commercial and Corporate Land and Property Large Merger Review Horizontal Overlap Public Interest Black Economic Empowerment Employment Effects

Case Brief

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Parties

Unico Property Partners Proprietary Limited

Applicant

Khumonetix Proprietary Limited in Respect of 6 Industrial Properties

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the merger will have any adverse public interest effects, including on employment and the spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger would result in a horizontal overlap in the market for rentable light industrial property, but the estimated market share of the target properties is low and there are numerous alternative properties in the relevant geographic area. The only potential overlap, involving vacant land owned by Nedbank, was found not to raise horizontal concerns. The Tribunal accepted the submissions that there would be no exchange of competitively sensitive information between competitors, as Vukile Property Fund is not a competitor in the relevant market and its directors would not be involved in Unico post-merger. No third parties raised concerns. On public...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Unico Property Partners Proprietary Limited and Khumonetix Proprietary Limited in respect of six industrial properties is approved unconditionally.