Attfund Retail Ltd v Parkdev (Pty) Ltd and Another (47/LM/Aug10) [2010] ZACT 64; [2010] 2 CPLR 319 (CT) (12 October 2010)

Attfund Retail Ltd v Parkdev (Pty) Ltd and Another (47/LM/Aug10) [2010] ZACT 64; [2010] 2 CPLR 319 (CT) (12 October 2010)

The Tribunal found that the proposed merger involved both vertical and horizontal elements. Horizontally, the overlap in retail property holdings was limited, as Willowbridge North and South were classified differently and the merged entity's market share in the relevant geographic area was low. Vertically, Parkdev's asset management business had a small market share and an exclusive pre-existing relationship with Attfund, making foreclosure unlikely. The Tribunal concluded that the transaction would not substantially prevent or lessen competition in any relevant market. Furthermore, the parties confirmed that no employees would be retrenched and no other public interest concerns were...

Citation
[2010] ZACT 64
Parties
Applicant: Attfund Retail Limited; Respondent: Parkdev (Pty) Ltd; Respondent: Willowbridge South Shopping Centre
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 October 2010
Case Number
47/LM/Aug10
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Merle Holden, Medi Mokuena
Legal Topics
Merger Control, Vertical Integration, Horizontal Overlap, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Vertical Integration Horizontal Overlap Public Interest Market Share Analysis

Case Brief

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Parties

Attfund Retail Limited

Applicant

Parkdev (Pty) Ltd

Respondent

Willowbridge South Shopping Centre

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether the vertical and horizontal aspects of the merger create foreclosure risks.

Ratio Decidendi

The Tribunal found that the proposed merger involved both vertical and horizontal elements. Horizontally, the overlap in retail property holdings was limited, as Willowbridge North and South were classified differently and the merged entity's market share in the relevant geographic area was low. Vertically, Parkdev's asset management business had a small market share and an exclusive pre-existing relationship with Attfund, making foreclosure unlikely. The Tribunal concluded that the transaction would not substantially prevent or lessen competition in any relevant market. Furthermore, the parties confirmed that no employees would be retrenched and no other public interest concerns were...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.