Redefine Property Limited v Pivotal Fund Limited (LM099sep16) [2016] ZACT 96 (12 December 2016)

Redefine Property Limited v Pivotal Fund Limited (LM099sep16) [2016] ZACT 96 (12 December 2016)

The Tribunal found that the proposed transaction gives rise to horizontal overlaps in the provision of rentable office, retail, and industrial property in several geographic markets. However, in all identified markets, the merged entity will continue to face significant competition constraints from other property owners. The Commission found no foreclosure concerns and confirmed that the transaction would not negatively affect employment or raise other public interest issues. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and does not raise public interest concerns. The transaction was approved...

Citation
[2016] ZACT 96
Parties
Applicant: Redefine Property Limited; Respondent: Pivotal Fund Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 December 2016
Case Number
LM099Sep16
Procedural Posture
Merger Review / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Yasmin Carrim, Medi Mokuena, Mondo Mazwai
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Foreclosure Concerns, Rentable Property Markets
Competition Law Commercial and Corporate Land and Property Merger Control Horizontal Overlap Public Interest Foreclosure Concerns Rentable Property Markets

Case Brief

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Parties

Redefine Property Limited

Applicant

Pivotal Fund Limited

Respondent

Procedural Posture

Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger between Redefine Property Limited and Pivotal Fund Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction gives rise to horizontal overlaps in the provision of rentable office, retail, and industrial property in several geographic markets. However, in all identified markets, the merged entity will continue to face significant competition constraints from other property owners. The Commission found no foreclosure concerns and confirmed that the transaction would not negatively affect employment or raise other public interest issues. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and does not raise public interest concerns. The transaction was approved...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Redefine Property Limited and Pivotal Fund Limited is approved without conditions.