Redefine Properties Ltd v Amber Falcon Properties (Pty) Ltd (44/LM/Apr12) [2012] ZACT 56 (18 July 2012)

Redefine Properties Ltd v Amber Falcon Properties (Pty) Ltd (44/LM/Apr12) [2012] ZACT 56 (18 July 2012)

The Tribunal found that although both merging parties are involved in the provision of rentable retail space, there is no geographical overlap between their activities in the Vosloorus area. Redefine does not own any shopping centres near Chris Hani Crossing, and there are over 40 other retail shopping centres within a 25 kilometre radius, providing ample competition and substitution options for consumers and tenants. The merging parties confirmed that the transaction would not adversely affect employment, and no other public interest concerns were identified. Consequently, the Tribunal concluded that the proposed merger is unlikely to substantially lessen or prevent competition in any...

Citation
[2012] ZACT 56
Parties
Applicant: Redefine Properties Limited; Respondent: Amber Falcon Properties (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 July 2012
Case Number
44/LM/Apr12
Procedural Posture
Merger Control / Merger Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Norman Manoim, Andreas Wessels, Medi Mokuena
Legal Topics
Merger Control, Retail Property Market, Public Interest, Market Definition
Competition Law Commercial and Corporate Merger Control Retail Property Market Public Interest Market Definition

Case Brief

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Parties

Redefine Properties Limited

Applicant

Amber Falcon Properties (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger between Redefine Properties Limited and Amber Falcon Properties (Pty) Ltd is likely to substantially lessen or prevent competition in any relevant market.
  2. 2 Whether the transaction raises any adverse public interest concerns.

Ratio Decidendi

The Tribunal found that although both merging parties are involved in the provision of rentable retail space, there is no geographical overlap between their activities in the Vosloorus area. Redefine does not own any shopping centres near Chris Hani Crossing, and there are over 40 other retail shopping centres within a 25 kilometre radius, providing ample competition and substitution options for consumers and tenants. The merging parties confirmed that the transaction would not adversely affect employment, and no other public interest concerns were identified. Consequently, the Tribunal concluded that the proposed merger is unlikely to substantially lessen or prevent competition in any...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Redefine Properties Limited and Amber Falcon Properties (Pty) Ltd in respect of 50% of the property letting enterprise known as Chris Hani Crossing is approved unconditionally.