Redefine Properties Limited v Cirano Investments 300 (Pty) Ltd (LM213Feb17) [2017] ZACT 32; [2017] 1 CPLR 369 (CT) (12 April 2017)

Redefine Properties Limited v Cirano Investments 300 (Pty) Ltd (LM213Feb17) [2017] ZACT 32; [2017] 1 CPLR 369 (CT) (12 April 2017)

The Tribunal found that the proposed transaction would result in Redefine increasing its shareholding in the Galleria property to 62.31%, with further indirect control through Pivotal. The Commission identified horizontal overlaps in the provision of rentable office, retail, and residential property, but determined that post-transaction market shares would not confer market power sufficient to substantially prevent or lessen competition. The merged entity would continue to face competition from other property owners and new developments. The Tribunal accepted the Commission's analysis and concurred that the transaction would not adversely affect competition. Regarding public interest, the...

Citation
[2017] ZACT 32
Parties
Applicant: Redefine Properties Limited; Respondent: Cirano Investments 300 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 April 2017
Case Number
LM213Feb17
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
Andiswa Ndoni, Fiona Tregenna, Enver Daniels
Legal Topics
Merger Control, Market Definition, Horizontal Overlap, Public Interest, Property Investment, Employment Effects
Competition Law Commercial and Corporate Land and Property Merger Control Market Definition Horizontal Overlap Public Interest Property Investment +1 more

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Parties

Redefine Properties Limited

Applicant

Cirano Investments 300 (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of a 17.31% undivided share in the Galleria property by Redefine Properties Limited will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any adverse public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would result in Redefine increasing its shareholding in the Galleria property to 62.31%, with further indirect control through Pivotal. The Commission identified horizontal overlaps in the provision of rentable office, retail, and residential property, but determined that post-transaction market shares would not confer market power sufficient to substantially prevent or lessen competition. The merged entity would continue to face competition from other property owners and new developments. The Tribunal accepted the Commission's analysis and concurred that the transaction would not adversely affect competition. Regarding public interest, the...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Redefine Properties Limited and Cirano Investments 300 (Pty) Ltd in respect of a 17.31% undivided share in the Galleria property is approved without conditions.