Units on Jorissen Proprietary Limited v Varsity Stay 2 Proprietary Limited (LM130Nov23) [2024] ZACT 13; [2024] 2 CPLR 26 (CT) (20 February 2024)

Units on Jorissen Proprietary Limited v Varsity Stay 2 Proprietary Limited (LM130Nov23) [2024] ZACT 13; [2024] 2 CPLR 26 (CT) (20 February 2024)

The Tribunal found that the Acquiring Group already controlled the Target Property prior to the merger, and the transaction would not result in any market share accretion or change in competitive position. No evidence was presented to suggest a departure from the established product and geographic market...

Source-derived case information.

Citation
[2024] ZACT 13
Parties
Applicant: Units on Jorissen Proprietary Limited; Respondent: Varsity Stay 2 Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 February 2024
Case Number
LM130Nov23
Procedural Posture
Large Merger / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
L Mncube, A Ndoni, T Vilakazi
Legal Topics
Large Merger Review, Student Accommodation Market, Public Interest Employment, Spread of Ownership, Market Definition, Competition Assessment
Competition Law Commercial and Corporate Large Merger Review Student Accommodation Market Public Interest Employment Spread of Ownership Market Definition Competition Assessment

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Summary, issues, holding and outcome

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Parties

Units on Jorissen Proprietary Limited

Applicant

Varsity Stay 2 Proprietary Limited

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that the Acquiring Group already controlled the Target Property prior to the merger, and the transaction would not result in any market share accretion or change in competitive position. No evidence was presented to suggest a departure from the established product and geographic market definitions. The Commission and merging parties confirmed there was no geographical overlap and no competition concerns. The Tribunal also found no negative impact on employment and concluded that the transaction would promote a greater spread of ownership by historically disadvantaged persons. No other public interest concerns were identified. Accordingly, the Tribunal approved the...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The large merger between Units on Jorissen Proprietary Limited and Varsity Stay 2 Proprietary Limited is approved unconditionally.