Accelerate Property Fund Limited v Laritza Investments No 183 Proprietary Limited (LM054JUL16) [2016] ZACT 73 (12 August 2016)

Accelerate Property Fund Limited v Laritza Investments No 183 Proprietary Limited (LM054JUL16) [2016] ZACT 73 (12 August 2016)

The Tribunal found that the proposed transaction presents an overlap in the broad market for rentable retail property space in the Western Cape. However, the Target Centre is located approximately 400km from the Acquiring Group's nearest retail properties, and the Commission concluded that the transaction is unlikely to substantially prevent or lessen competition in any relevant market. The Tribunal concurred with this assessment. Regarding public interest, the retrenchment of two management employees was considered too small to constitute a substantial public interest concern, and no other public interest issues were raised. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2016] ZACT 73
Parties
Applicant: Accelerate Property Fund Limited; Respondent: Laritza Investments No 183 Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 August 2016
Case Number
LM054JUL16
Procedural Posture
Merger Control / Approval of Large Merger
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Imraan Valodia, Andiswa Ndoni
Legal Topics
Merger Control, Public Interest Assessment, Substantial Lessening of Competition, Retrenchment Impact
Competition Law Commercial and Corporate Merger Control Public Interest Assessment Substantial Lessening of Competition Retrenchment Impact

Case Brief

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Parties

Accelerate Property Fund Limited

Applicant

Laritza Investments No 183 Proprietary Limited

Respondent

Procedural Posture

Merger Control / Approval of Large Merger

Legal Issues

  1. 1 Whether the proposed merger between Accelerate Property Fund Limited and Laritza Investments No 183 Proprietary Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any substantial public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that the proposed transaction presents an overlap in the broad market for rentable retail property space in the Western Cape. However, the Target Centre is located approximately 400km from the Acquiring Group's nearest retail properties, and the Commission concluded that the transaction is unlikely to substantially prevent or lessen competition in any relevant market. The Tribunal concurred with this assessment. Regarding public interest, the retrenchment of two management employees was considered too small to constitute a substantial public interest concern, and no other public interest issues were raised. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Accelerate Property Fund Limited and Laritza Investments No 183 Proprietary Limited in relation to Eden Meander Lifestyle Centre is approved without conditions.