Redefine Properties Limited and Others v Cirano 300 Investments Proprietary Limited in respect of a 75% undivided in Erf 221, Rosebank known as Galleria (LM168Oct15) [2016] ZACT 24 (9 March 2016)

Redefine Properties Limited and Others v Cirano 300 Investments Proprietary Limited in respect of a 75% undivided in Erf 221, Rosebank known as Galleria (LM168Oct15) [2016] ZACT 24 (9 March 2016)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant markets for office, retail, and residential property. The Commission's investigation revealed minimal market share accretion and the presence of sufficient competitive alternatives. In residential property, the distinction between student and luxury accommodation meant no anti-competitive overlap. The Tribunal also addressed concerns about information sharing via board appointments, with the merging parties undertaking to prevent the transfer of competitively sensitive information. No public interest concerns, including employment, were identified. Accordingly, the merger...

Citation
[2016] ZACT 24
Parties
Applicant: Redefine Properties Limited; Applicant: The Pivotal Fund Limited; Applicant: Abshelf 04 Proprietary Limited; Respondent: Cirano 300 Investments Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 March 2016
Case Number
LM168Oct15
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Medi Mokuena, Fiona Tregenna
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Information Sharing
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Market Share Analysis Public Interest Information Sharing

Case Brief

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Parties

Redefine Properties Limited

Applicant

The Pivotal Fund Limited

Applicant

Abshelf 04 Proprietary Limited

Applicant

Cirano 300 Investments Proprietary Limited

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the relevant office, retail, and residential property markets.
  2. 2 Whether the transaction raises any public interest concerns, including employment.
  3. 3 Whether the joint venture structure could facilitate anti-competitive information sharing.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the relevant markets for office, retail, and residential property. The Commission's investigation revealed minimal market share accretion and the presence of sufficient competitive alternatives. In residential property, the distinction between student and luxury accommodation meant no anti-competitive overlap. The Tribunal also addressed concerns about information sharing via board appointments, with the merging parties undertaking to prevent the transfer of competitively sensitive information. No public interest concerns, including employment, were identified. Accordingly, the merger...

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Redefine Properties Limited, The Pivotal Fund Limited, Abshelf 04 Proprietary Limited, and Cirano 300 Investments Proprietary Limited in respect of a 75% undivided share in Erf 221, Rosebank known as the Galleria is approved unconditionally.
  • The merging parties are to inform the Tribunal of board appointments to the joint venture once finalized.