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OUTCOME OF CASES HEARD BY THE TRIBUNAL ON 3 OCTOBER 2018
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| Type of matter |
Parties involved |
Competition Commissions Recommendation to Tribunal |
Tribunal Decision |
| Large merger |
Nedbank Ltd, RMH Propert Holdco 5 (Pty) Ltd and Divercity Urban Property Fund (Pty) Ltd |
Approve the merger with conditions |
Postponed |
| Large merger |
Grand Prime Trading (Pty) Ltd and Tebfin Development (Pty) Ltd (in respect of Turbine Square and Hall) |
Approve the merger without conditions |
Approved without conditions |
| Large merger |
DiverCity Urban Property Fund (Pty) Ltd and Atterbury Property Fund (In respect of Talis House (Pty) Ltd) |
Approve the merger without conditions |
Approved without conditions |
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Property fund merger raises concerns about possible information sharing
The Competition Commission (“Commission”) has recommended that the Tribunal approve a property fund merger on condition that the acquiring firms in the merger not be allowed to nominate or appoint directors, who already serve on competing boards, on the board of the firm they wish to acquire.
The Commission’s recommendation follows its assessment of a proposed merger in which Nedbank Ltd (“Nedbank”) and RMH Property Holdco 5 (Pty) Ltd (“RMHP”) each intend to purchase shares in DiverCity Urban Property Fund (Pty) Ltd (“DiverCity”). Once the transaction is concluded, Nedbank and RMHP will jointly control DiverCity.
The three parties to the merger are involved in the market for rentable retail, office, industrial, miscellaneous and residential properties. Given the competitive overlap between the merging parties the Commission sought to safeguard against potential information sharing. Accordingly, the Commission recommended that the Tribunal approve the proposed transaction subject to the condition that each acquiring firm will not nominate or appoint directors that already serve on the board of competing firms.
On 3 October, the Tribunal postponed this hearing in order to give the Commission time to consider submissions made by the merging parties.
DiverCity looks to purchase Johannesburg office space
On Wednesday the Competition Tribunal (“Tribunal”) heard a merger between DiverCity Urban Property Fund (Pty) Ltd (“DiverCity”) and Atterbury Property Fund. In terms of this transaction, DiverCity intends to acquire Talis House (Pty) Ltd (“Talis House”) – a property letting enterprise located in the Johannesburg CBD – from Atterbury Property Fund.
DiverCity is an urban property fund focused on investing and renewing dense urban precincts on a collaborative basis with its shareholders. Atterbury Property Fund owns Talis House which comprises rentable office space in the Johannesburg CBD.
The Competition Commission (“Commission”) assessed the proposed transaction and concluded that it was unlikely to raise any significant competition concerns. Accordingly the Commission recommended that the Tribunal approve the deal without conditions. The Tribunal heard the matter on Wednesday and approved the merger without conditions.
DiverCity expands its Johannesburg property portfolio through its subsidiary
On Wednesday the Competition Tribunal (“Tribunal”) considered the acquisition, by Grand Prime Trading, of the property known as Turbine Square and Hall from Tefbin Development (Pty) Ltd. On completion of the proposed merger, Turbine Square and Hall will be solely owned by Grand Prime Trading, a subsidiary of DiverCity.
Grand Prime Trading is a newly established entity established to own Turbine Square and Hall. It therefore does not conduct any other business activity. DiverCity is a property investment and holding company formed to be a mixed-use private property holding, investment and development fund. Turbine Square and Hall is a building comprising rentable office space located in Newtown, Johannesburg.
The Competition Commission (“Commission”) assessed the proposed transaction and concluded that it was unlikely to raise any significant competition concerns. Accordingly the Commission recommended that the Tribunal approve the deal without conditions. The Tribunal heard the matter on Wednesday and approved it without conditions.
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Nandi Mokoena
Acting Communications Officer
Tel: (0) 12 394 1383
Cell: +27 (0) 82 399 1328
Twitter: @comptrib
E-Mail: NandisileM@live.co.za |
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