Competition Tribunal approves Growthpoint, Feenstra Group merger
The Competition Tribunal has unconditionally approved the large merger whereby Growthpoint Properties will acquire Joburg Stay from Feenstra Group.
This transaction involves an internal reorganisation of the Feenstra Group.
As such, the target firms are Joburg Stay, seven Gauteng student accommodation properties and their rental enterprises that Joburg Stay will wholly own.
Post-merger, Growthpoint will have control over Joburg Stay through its ability to appoint a majority of the board members.
In its competition analysis, the tribunal concluded that the merger was unlikely to substantially prevent or lessen competition in any market in South Africa as the transaction will not result in any market share accretion or any change in the competitive landscape in any relevant market.
In addition, the tribunal found that there was no vertical overlap between the merger parties’ activities as they do not participate at different levels of the same supply chain.
It added that the merger was “unlikely to create a platform for the exchange of competitively sensitive information to the detriment of competition in the rentable office space market”.
The merger will not have an impact on employment and the tribunal said that it was likely to promote a greater spread of ownership by historically disadvantaged persons (HDPs) in the market as Joburg Stay will benefit from the shareholding by HDPs in Growthpoint.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation