Cubisol Investments 3 (Pty) Ltd v Retail Letting Enterprise known as Lonehill Shopping Centre owned by Lonehill Shopping Centre (Pty) Ltd (LM114Sep16) [2016] ZACT 104 (12 November 2016)

Cubisol Investments 3 (Pty) Ltd v Retail Letting Enterprise known as Lonehill Shopping Centre owned by Lonehill Shopping Centre (Pty) Ltd (LM114Sep16) [2016] ZACT 104 (12 November 2016)

The Tribunal found that although the merging parties operate in the same product market—rentable space in convenience centres—there is no geographic overlap between the target property and the acquiring group's existing properties. The distances between the properties are significant, and therefore, the transaction does not raise competition concerns. Furthermore, the merging parties confirmed that the transaction would have no adverse effect on employment, and no other public interest issues were identified. As a result, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and raises no public interest...

Citation
[2016] ZACT 104
Parties
Applicant: Cubisol Investments 3 (Pty) Ltd; Respondent: Retail Letting Enterprise known as Lonehill Shopping Centre owned by Lonehill Shopping Centre (Pty) Ltd; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 November 2016
Case Number
LM114Sep16
Procedural Posture
Merger Control / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
AW Wessels, Mondo Mazwai, Andiswa Ndoni
Legal Topics
Merger Control, Substantial Lessening of Competition, Public Interest, Retail Property Market
Competition Law Merger Control Substantial Lessening of Competition Public Interest Retail Property Market

Case Brief

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Parties

Cubisol Investments 3 (Pty) Ltd

Applicant

Retail Letting Enterprise known as Lonehill Shopping Centre owned by Lonehill Shopping Centre (Pty) Ltd

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of Lonehill Shopping Centre by Cubisol Investments 3 (Pty) Ltd is likely to substantially prevent or lessen competition in the market for rentable space in convenience centres.
  2. 2 Whether the proposed transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that although the merging parties operate in the same product market—rentable space in convenience centres—there is no geographic overlap between the target property and the acquiring group's existing properties. The distances between the properties are significant, and therefore, the transaction does not raise competition concerns. Furthermore, the merging parties confirmed that the transaction would have no adverse effect on employment, and no other public interest issues were identified. As a result, the Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and raises no public interest...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between Cubisol Investments 3 (Pty) Ltd and the retail letting enterprise known as Lonehill Shopping Centre owned by Lonehill Shopping Centre (Pty) Ltd is approved without conditions.