Redefine Properties Limited v VDMV Brackengate 2 (Pty) Limited (LM129Oct22) [2022] ZACT 89 (13 December 2022)

Redefine Properties Limited v VDMV Brackengate 2 (Pty) Limited (LM129Oct22) [2022] ZACT 89 (13 December 2022)

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition, as Redefine Properties already held a majority share in the target property and the change was from joint to sole ownership. The market for rentable light industrial space was considered, but a definitive market definition was deemed unnecessary due to the lack of significant competitive impact. No third-party or public interest concerns, including employment or spread of ownership, were identified. The transaction was therefore approved unconditionally.

Citation
[2022] ZACT 89
Parties
Applicant: Redefine Properties Limited; Respondent: VDMV Brackengate 2 (Pty) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 December 2022
Case Number
LM129Oct22
Procedural Posture
Large Merger Approval / Reasons for Decision
Outcome
The merger was unconditionally approved.
Judges
S Goga, M Mazwai, F Tregenna
Legal Topics
Large Merger, Market Definition, Public Interest, Employment Effects, Spread of Ownership
Competition Law Commercial and Corporate Large Merger Market Definition Public Interest Employment Effects Spread of Ownership

Case Brief

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Parties

Redefine Properties Limited

Applicant

VDMV Brackengate 2 (Pty) Limited

Respondent

Procedural Posture

Large Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment and spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition, as Redefine Properties already held a majority share in the target property and the change was from joint to sole ownership. The market for rentable light industrial space was considered, but a definitive market definition was deemed unnecessary due to the lack of significant competitive impact. No third-party or public interest concerns, including employment or spread of ownership, were identified. The transaction was therefore approved unconditionally.

Court Disposition

The merger was unconditionally approved.

Orders

  • The large merger between Redefine Properties Limited and VDMV Brackengate 2 (Pty) Limited is approved without conditions.