Fortyellow (Pty) Ltd (t/a Fortwood) v DSV Real Estate Johannesburg (Pty) Ltd (LM0139Oct20) [2020] ZACT 48 (30 November 2020)

Fortyellow (Pty) Ltd (t/a Fortwood) v DSV Real Estate Johannesburg (Pty) Ltd (LM0139Oct20) [2020] ZACT 48 (30 November 2020)

The Tribunal found that the proposed transaction would not result in a horizontal overlap in the market for rentable office space, as the Acquiring Group owns only Grade A and B office properties, which are not substitutes for the Grade P office property of the target. In the market for rentable light industrial property, the merged entity's post-merger market share would be approximately 11.09%, with a minimal accretion of 1.75%. The market remains competitive, with several other significant players. The transaction does not raise any public interest concerns, as DSV has no employees and there will be no retrenchments. The Tribunal concluded that the transaction is unlikely to...

Citation
[2020] ZACT 48
Parties
Applicant: Fortyellow (Pty) Ltd (t/a Fortwood); Respondent: DSV Real Estate Johannesburg (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 November 2020
Case Number
LM0139Oct20
Procedural Posture
Merger Review / Decision on Approval
Outcome
Merger approved unconditionally.
Judges
M Mazwai, E Daniels, A Ndoni
Legal Topics
Merger Control, Market Definition, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Market Share Analysis

Case Brief

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Parties

Fortyellow (Pty) Ltd (t/a Fortwood)

Applicant

DSV Real Estate Johannesburg (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Decision on Approval

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a horizontal overlap in the market for rentable office space, as the Acquiring Group owns only Grade A and B office properties, which are not substitutes for the Grade P office property of the target. In the market for rentable light industrial property, the merged entity's post-merger market share would be approximately 11.09%, with a minimal accretion of 1.75%. The market remains competitive, with several other significant players. The transaction does not raise any public interest concerns, as DSV has no employees and there will be no retrenchments. The Tribunal concluded that the transaction is unlikely to...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.