Urban Impact Properties Limited v Pulse Student Lifestyle (Pty) Ltd (LM099Jun18) [2018] ZACT 50 (24 August 2018)

Urban Impact Properties Limited v Pulse Student Lifestyle (Pty) Ltd (LM099Jun18) [2018] ZACT 50 (24 August 2018)

The Tribunal found that the post-merger entity would hold market shares below 5% in the relevant markets for rentable student accommodation in Pretoria and residential accommodation in Johannesburg, facing strong competition from other providers. In Cape Town, the properties of the merging parties are not actual competitors due to their distance and differing customer bases. No negative employment effects or other public interest concerns were identified. Therefore, the merger is unlikely to substantially prevent or lessen competition or raise public interest issues, and unconditional approval is warranted.

Citation
[2018] ZACT 50
Parties
Applicant: Urban Impact Properties Limited; Respondent: Pulse Student Lifestyle (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 August 2018
Case Number
LM099Jun18
Procedural Posture
Merger Control / Approval of Large Merger
Outcome
The merger is approved unconditionally.
Judges
Yasmin Carrim, Imraan Valodia, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Student Accommodation, Residential Property Investment
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Share Analysis Public Interest Student Accommodation Residential Property Investment

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Parties

Urban Impact Properties Limited

Applicant

Pulse Student Lifestyle (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the post-merger entity would hold market shares below 5% in the relevant markets for rentable student accommodation in Pretoria and residential accommodation in Johannesburg, facing strong competition from other providers. In Cape Town, the properties of the merging parties are not actual competitors due to their distance and differing customer bases. No negative employment effects or other public interest concerns were identified. Therefore, the merger is unlikely to substantially prevent or lessen competition or raise public interest issues, and unconditional approval is warranted.

Court Disposition

The merger is approved unconditionally.

Orders

  • The large merger between Urban Impact Properties Limited and Pulse Student Lifestyle (Pty) Ltd is approved without conditions.