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COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA
Case No.: LM026May25
In the matter between:
K2025069797 (South Africa) (Pty) Ltd Primary Acquiring Firm
and
The student housing immoveable properties Primary Target Firm
and rental enterprises trading under the name
"My Space @" represented by My Space Hostel (Pty) Ltd
Panel: A Wessels (Presiding Member)
: T Vilakazi (Tribunal Member)
: G Budlender (Tribunal Member)
Heard on: 09 July 2025
Order issued on: 09 July 2025
Reasons issued on: 14 July 2025
REASONS FOR DECISION
Approval
[1] On 09 July 2025, the Competition Tribunal (“Tribunal”) unconditionally
approved the large merger wherein K2025069797 (South Africa) (Pty) Ltd (“NewCo”)
intends to acquire various student housing properties and rental enterprises (the
“Target Properties”) from My Space Hostel (Pty) Ltd (“My Space”). Post-merger,
NewCo will solely control and wholly own the Target Properties.
[2] The primary acquiring firm is NewCo, a South African firm, wholly owned by
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Respublica Group (Pty) Ltd (“Respublica Group”). Respublica Group controls
Respublica Student Living (Pty) Ltd and Respublica Management Services (Pty) Ltd.
[3] NewCo and its direct and indirect controlling and controlled firms are referred
to as the “Acquiring Group". Relevant to the competition assessment of this
proposed transaction is the Acquiring Group’s student accommodation property,
known as Roscommon House in the Western Cape, Cape Town, Claremont, which consists
of 528 beds.
[4] The primary target firm is the Target Properties, which comprise rentable
residential properties used for student accommodation in Stellenbosch, South Africa,
collectively consisting of 584 beds. This includes:
1. My Space @Paradys Property consisting of 127 beds and 102 parking
bays located at Erf 13221 Stellenbosch, measuring 4771m²;
2. My Space @Dorpstreet Property consisting of 149 beds and 110
parking bays located at the sectional title scheme known as Erf 16442
Stellenbosch;
3. My Space @Drostdy Property consisting of 185 beds and 110 parking
bays located at Section 8 to 12 in the sectional title scheme; and
4. My Space @DeWeides consisting of 123 beds located at 34
Soeteweide Road, Stellenbosch, Erf 2303, measuring 1183m².
[5] The Target Properties are controlled by My Space, which is wholly owned by
Abacus Property Holdings (Pty) Ltd (“Abacus”).
Competition assessment
[6] The Competition Commission (“Commission”) found a horizontal product
overlap between the activities of the merging parties since both are active in the
provision of rentable residential property used for student accommodation. The
Commission, however, found no geographic overlap between the merger parties’
relevant properties, since the Acquiring Group’s student accommodation properties
are located 48 kilometres away from the Target Properties.
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[7] Given the lack of geographic overlap, we conclude that the proposed
transaction is unlikely to substantially prevent or lessen competition in any market.
Employment
[8] The merging parties submitted that the proposed merger will not result in any
merger-specific retrenchments.
1 The Commission contacted the employees of
Abacus who were conducting the property management function at the Target
Properties, and no employee raised concerns.
Ownership
[9] The Commission found that the Acquiring Group has a 19.9% shareholding
held by Historically Disadvantaged Persons (HDPs), whilst My Space does not have
any HDP shareholding.
Other public interest
[10] The proposed transaction does not raise any other public interest issues.
Conclusion
[11] Given the above, we unconditionally approved the proposed transaction.
14 July 2025
Mr Andreas Wessels Date
Prof. Thando Vilakazi and Adv Geoff Budlender SC concurring.
Tribunal Case Manager: Theresho Galane and Princess Ka-Siboto
For the Merger Parties: Susan Meyer and Robin Henney of Cliffe
Dekker Hofmeyr Inc. Attorneys
1 See para. 11.3, page 40 of the Record.
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For the Commission: Horisani Mhlari and Grashum Mutizwa