Community Property Company (Pty) Ltd v Eyethu Orange Farm Mall (LM267Jan18) [2018] ZACT 20; [2018] 1 CPLR 250 (CT) (9 March 2018)

Community Property Company (Pty) Ltd v Eyethu Orange Farm Mall (LM267Jan18) [2018] ZACT 20; [2018] 1 CPLR 250 (CT) (9 March 2018)

The Tribunal found that the proposed transaction does not result in a substantial prevention or lessening of competition in any relevant market, as there is no geographic overlap between the acquiring firm's existing properties and the target property. The nearest comparable centre owned by the acquiring firm is approximately 46km away, which is insufficient to impose a competitive constraint. Furthermore, the transaction does not raise any adverse public interest concerns, as employees will be transferred in accordance with the Labour Relations Act and no negative impact on employment is anticipated. Accordingly, the merger was unconditionally approved.

Citation
[2018] ZACT 20
Parties
Applicant: Community Property Company (Pty) Ltd; Respondent: Eyethu Orange Farm Mall; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 March 2018
Case Number
LM267Jan18
Procedural Posture
Large Merger Review / Approval
Outcome
Merger unconditionally approved.
Judges
Norman Manoim, Enver Daniels, Prof. lmraan Valodia
Legal Topics
Large Merger, Horizontal Overlap, Public Interest, Labour Relations Act, Retail Property Market
Competition Law Commercial and Corporate Large Merger Horizontal Overlap Public Interest Labour Relations Act Retail Property Market

Case Brief

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Parties

Community Property Company (Pty) Ltd

Applicant

Eyethu Orange Farm Mall

Respondent

Competition Commission

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of a 90% interest and joint control in Eyethu Orange Farm Mall by Community Property Company (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any adverse public interest concerns, including employment impacts.

Ratio Decidendi

The Tribunal found that the proposed transaction does not result in a substantial prevention or lessening of competition in any relevant market, as there is no geographic overlap between the acquiring firm's existing properties and the target property. The nearest comparable centre owned by the acquiring firm is approximately 46km away, which is insufficient to impose a competitive constraint. Furthermore, the transaction does not raise any adverse public interest concerns, as employees will be transferred in accordance with the Labour Relations Act and no negative impact on employment is anticipated. Accordingly, the merger was unconditionally approved.

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Community Property Company (Pty) Ltd and Eyethu Orange Farm Mall is unconditionally approved.
  • No conditions are imposed on the approval of the merger.