Absa Bank Limited v Ballito Junction Development (Pty) Ltd (84/LM/AUG08) [2008] ZACT 89 (22 October 2008)

Absa Bank Limited v Ballito Junction Development (Pty) Ltd (84/LM/AUG08) [2008] ZACT 89 (22 October 2008)

The Tribunal found that although there is a horizontal overlap in the activities of the merging parties in respect of neighbourhood retail shopping centres, there is no geographic overlap since Absa does not own any such centre in Ballito, KwaZulu-Natal, where Ballito Junction’s only property is situated. Consequently, the merger will not result in any substantial lessening or prevention of competition in any relevant market in the property sector. There are no public interest issues arising from the transaction. The merger is approved without conditions.

Citation
[2008] ZACT 89
Parties
Applicant: Absa Bank Limited; Respondent: Ballito Junction Development (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 October 2008
Case Number
84/LM/AUG08
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Property Merger, Horizontal Overlap, Sole Control, Substantial Lessening of Competition
Competition Law Commercial and Corporate Property Merger Horizontal Overlap Sole Control Substantial Lessening of Competition

Case Brief

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Parties

Absa Bank Limited

Applicant

Ballito Junction Development (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger will result in a substantial lessening or prevention of competition in the relevant property sector markets.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap in the activities of the merging parties in respect of neighbourhood retail shopping centres, there is no geographic overlap since Absa does not own any such centre in Ballito, KwaZulu-Natal, where Ballito Junction’s only property is situated. Consequently, the merger will not result in any substantial lessening or prevention of competition in any relevant market in the property sector. There are no public interest issues arising from the transaction. The merger is approved without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Absa Bank Limited and Ballito Junction Development (Pty) Ltd is approved without conditions.