Redefine Retail (Pty) Ltd v Sanlam Life Insurance Ltd (111/LM/Dec12) [2013] ZACT 10 (5 March 2013)

Redefine Retail (Pty) Ltd v Sanlam Life Insurance Ltd (111/LM/Dec12) [2013] ZACT 10 (5 March 2013)

The Tribunal found that, even if the relevant geographic market is defined narrowly as a 10 to 15 km radius from the East Rand Mall, there is no overlap between the activities of the merging parties in rentable retail space in regional shopping centres. If a broader market is considered, the overlap exists but the merged entity's market share remains small. The transaction does not raise competition concerns. Furthermore, the merging parties confirmed that there will be no adverse effect on employment and no other public interest concerns arise. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2013] ZACT 10
Parties
Applicant: Redefine Retail (Pty) Ltd; Respondent: Sanlam Life Insurance Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 March 2013
Case Number
111/LM/Dec12
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Mondo Mazwai, Anton Roskam
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Public Interest, Employment Effects
Competition Law Merger Control Horizontal Overlap Market Definition Public Interest Employment Effects

Case Brief

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Parties

Redefine Retail (Pty) Ltd

Applicant

Sanlam Life Insurance Limited

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed acquisition of East Rand Mall by Redefine Retail raises competition concerns in the relevant market.
  2. 2 Whether the transaction will have any adverse public interest effects, including on employment.

Ratio Decidendi

The Tribunal found that, even if the relevant geographic market is defined narrowly as a 10 to 15 km radius from the East Rand Mall, there is no overlap between the activities of the merging parties in rentable retail space in regional shopping centres. If a broader market is considered, the overlap exists but the merged entity's market share remains small. The transaction does not raise competition concerns. Furthermore, the merging parties confirmed that there will be no adverse effect on employment and no other public interest concerns arise. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Redefine Retail (Pty) Ltd and Sanlam Life Insurance Limited in respect of the East Rand Mall is approved without conditions.