Fortress Income 2 (Pty) Ltd v Property letting Enterprise trading as Arbour Crossing And Galleria Shopping Centre (017806) [2013] ZACT 113 (20 November 2013)

Fortress Income 2 (Pty) Ltd v Property letting Enterprise trading as Arbour Crossing And Galleria Shopping Centre (017806) [2013] ZACT 113 (20 November 2013)

The Tribunal found that although there is a product overlap in the market for rentable retail property, the properties in Fortress's portfolio are predominantly convenience and neighbourhood centres located more than 25 kilometres from the target properties. This distance eliminates any significant geographic overlap. The transaction does not raise competition concerns nor any adverse public interest issues, as confirmed by the merging parties and the Commission. Therefore, the merger is unlikely to substantially prevent or lessen competition in any relevant market and does not negatively impact employment or other public interests.

Citation
[2013] ZACT 113
Parties
Applicant: Fortress Income 2 (Pty) Ltd; Respondent: Property letting enterprises trading as Arbour Crossing and Galleria Shopping Centre
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 November 2013
Case Number
017806
Procedural Posture
Merger Application / Decision on Unconditional Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Takalani Madima, Mondo Mazwai, Anton Roskam
Legal Topics
Merger Control, Retail Property Market, Joint Control, Public Interest, Market Overlap
Competition Law Merger Control Retail Property Market Joint Control Public Interest Market Overlap

Case Brief

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Parties

Fortress Income 2 (Pty) Ltd

Applicant

Property letting enterprises trading as Arbour Crossing and Galleria Shopping Centre

Respondent

Procedural Posture

Merger Application / Decision on Unconditional Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that although there is a product overlap in the market for rentable retail property, the properties in Fortress's portfolio are predominantly convenience and neighbourhood centres located more than 25 kilometres from the target properties. This distance eliminates any significant geographic overlap. The transaction does not raise competition concerns nor any adverse public interest issues, as confirmed by the merging parties and the Commission. Therefore, the merger is unlikely to substantially prevent or lessen competition in any relevant market and does not negatively impact employment or other public interests.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed merger between Fortress Income 2 (Pty) Ltd and the property letting enterprises trading as Arbour Crossing and Galleria Shopping Centre is approved unconditionally.