Arrowhead Properties Limited v Redefine Properties Limited in respect of the property letting enterprise known as Cleary Park (LM159Oct15) [2015] ZACT 107 (25 November 2015)

Arrowhead Properties Limited v Redefine Properties Limited in respect of the property letting enterprise known as Cleary Park (LM159Oct15) [2015] ZACT 107 (25 November 2015)

The Tribunal found that the relevant market is the provision of rentable retail space in comparative regional shopping centres. The acquiring group owns only one comparative centre, located in the Western Cape, while the target enterprise is in Port Elizabeth, Eastern Cape. There is no geographic overlap between the merging parties' comparative centres. The closest retail property owned by Arrowhead is a stand-alone unit 23.2km away from Cleary Park. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition in the relevant market. Furthermore, no public interest concerns were identified. The Tribunal agreed with the Commission's...

Citation
[2015] ZACT 107
Parties
Applicant: Arrowhead Properties Limited; Respondent: Redefine Properties Limited in respect of the property letting enterprise known as Cleary Park
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 November 2015
Case Number
LM159Oct15
Procedural Posture
Merger Review / Final Determination
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Mondo Mazwai, Fiona Tregenna
Legal Topics
Merger Review, Market Definition, Public Interest, Substantial Lessening of Competition
Competition Law Commercial and Corporate Merger Review Market Definition Public Interest Substantial Lessening of Competition

Case Brief

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Parties

Arrowhead Properties Limited

Applicant

Redefine Properties Limited in respect of the property letting enterprise known as Cleary Park

Respondent

Procedural Posture

Merger Review / Final Determination

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the market for rentable retail space in comparative regional shopping centres.
  2. 2 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the relevant market is the provision of rentable retail space in comparative regional shopping centres. The acquiring group owns only one comparative centre, located in the Western Cape, while the target enterprise is in Port Elizabeth, Eastern Cape. There is no geographic overlap between the merging parties' comparative centres. The closest retail property owned by Arrowhead is a stand-alone unit 23.2km away from Cleary Park. The Commission's investigation confirmed that the transaction would not substantially prevent or lessen competition in the relevant market. Furthermore, no public interest concerns were identified. The Tribunal agreed with the Commission's...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Arrowhead Properties Limited and Redefine Properties Limited in respect of Cleary Park is approved without conditions.