Equities Property Fund Ltd v Retail Logistics Fund (Pty) Ltd (LM038Jun20) [2020] ZACT 39 (26 October 2020)

Equities Property Fund Ltd v Retail Logistics Fund (Pty) Ltd (LM038Jun20) [2020] ZACT 39 (26 October 2020)

The Tribunal found that the proposed transaction would not significantly alter the structure of the relevant market for lettable light industrial property in Gauteng and the Western Cape. Although there is a horizontal and geographic overlap, the properties are already solely utilised by Shoprite, and the status quo will be maintained post-merger. The merged entity's market share, while sizable, is offset by the presence of strong competitors who collectively hold more than 50% of the market. No public interest concerns arise from the transaction. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2020] ZACT 39
Parties
Applicant: Equites Property Fund Ltd; Respondent: Retail Logistics Fund (Pty) Ltd; Respondent: Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 October 2020
Case Number
LM038Jun20
Procedural Posture
Merger Approval / Reasons for Unconditional Approval
Outcome
Unconditional approval of the proposed merger.
Judges
M Mazwai, E Daniels, I Valodia
Legal Topics
Merger Control, Market Share Analysis, Horizontal Overlap, Public Interest Assessment
Competition Law Commercial and Corporate Merger Control Market Share Analysis Horizontal Overlap Public Interest Assessment

Case Brief

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Parties

Equites Property Fund Ltd

Applicant

Retail Logistics Fund (Pty) Ltd

Respondent

Competition Commission

Respondent

Procedural Posture

Merger Approval / Reasons for Unconditional Approval

Legal Issues

  1. 1 Whether the proposed acquisition of control by Equites over Retail Logistics will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would not significantly alter the structure of the relevant market for lettable light industrial property in Gauteng and the Western Cape. Although there is a horizontal and geographic overlap, the properties are already solely utilised by Shoprite, and the status quo will be maintained post-merger. The merged entity's market share, while sizable, is offset by the presence of strong competitors who collectively hold more than 50% of the market. No public interest concerns arise from the transaction. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Unconditional approval of the proposed merger.

Orders

  • The proposed transaction is approved unconditionally.