Absa Bank Limited v Retail Africa Wingspan Investments (Proprietary) Limited (87/LM/AUG08) [2008] ZACT 90 (22 October 2008)

Absa Bank Limited v Retail Africa Wingspan Investments (Proprietary) Limited (87/LM/AUG08) [2008] ZACT 90 (22 October 2008)

The Tribunal found that although there is a minor overlap in the category of community shopping centres between Absa and Wingspan, there is no geographic overlap in the locations of their respective properties. Absa does not own any shopping centres in Centurion, Vredenburg, or Hartebeespoort, where Wingspan's centres are situated. The transaction will result in Absa acquiring joint control, but not sole control, over Wingspan. The Tribunal concluded that the merger will not result in any substantial lessening or prevention of competition in any relevant market in the property sector. No public interest issues were identified. Accordingly, the merger was approved unconditionally.

Citation
[2008] ZACT 90
Parties
Applicant: Absa Bank Limited; Respondent: Retail Africa Wingspan Investments (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 October 2008
Case Number
87/LM/AUG08
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally; no substantial lessening or prevention of competition found.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Joint Control, Property Investment, Minority Protection Rights
Competition Law Commercial and Corporate Merger Control Joint Control Property Investment Minority Protection Rights

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Absa Bank Limited

Applicant

Retail Africa Wingspan Investments (Proprietary) Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

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

Ratio Decidendi

The Tribunal found that although there is a minor overlap in the category of community shopping centres between Absa and Wingspan, there is no geographic overlap in the locations of their respective properties. Absa does not own any shopping centres in Centurion, Vredenburg, or Hartebeespoort, where Wingspan's centres are situated. The transaction will result in Absa acquiring joint control, but not sole control, over Wingspan. The Tribunal concluded that the merger will not result in any substantial lessening or prevention of competition in any relevant market in the property sector. No public interest issues were identified. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally; no substantial lessening or prevention of competition found.

Orders

  • The merger between Absa Bank Limited and Retail Africa Wingspan Investments (Proprietary) Limited is approved without conditions.