Lexshell 44 General Trading (Pty) and V&A Waterfront Holdings (Pty) Ltd (86/LM/Oct06) [2006] ZACT 89 (4 December 2006)

Lexshell 44 General Trading (Pty) and V&A Waterfront Holdings (Pty) Ltd (86/LM/Oct06) [2006] ZACT 89 (4 December 2006)

The Tribunal found that although there is a product overlap between the merging parties in retail, office property, and property development, there is no geographic overlap in South Africa. The acquiring group is not active in any product market upstream or downstream to those in which the target group operates. The Commission's investigation confirmed these findings. As a result, the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, no public interest concerns were raised. Accordingly, the merger was approved unconditionally.

Citation
[2006] ZACT 89
Parties
Applicant: Lexshell 44 General Trading (Pty) Ltd; Respondent: V&A Waterfront Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 December 2006
Case Number
86/LM/Oct06
Procedural Posture
Merger Control / Merger Approval
Outcome
The merger is approved unconditionally.
Judges
D.H Lewis, M.T.K Moerane, M Mokuena
Legal Topics
Merger Control, Substantial Lessening of Competition, Public Interest, Property Investment, Market Definition
Competition Law Commercial and Corporate Merger Control Substantial Lessening of Competition Public Interest Property Investment Market Definition

Case Brief

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Parties

Lexshell 44 General Trading (Pty) Ltd

Applicant

V&A Waterfront Holdings (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Lexshell 44 General Trading (Pty) Ltd and V&A Waterfront Holdings (Pty) Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that although there is a product overlap between the merging parties in retail, office property, and property development, there is no geographic overlap in South Africa. The acquiring group is not active in any product market upstream or downstream to those in which the target group operates. The Commission's investigation confirmed these findings. As a result, the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, no public interest concerns were raised. Accordingly, the merger was approved unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed merger between Lexshell 44 General Trading (Pty) Ltd and V&A Waterfront Holdings (Pty) Ltd is approved without conditions.