Redefine Retail (pty) Ltd v the trustees for the time being of the RPJ Maponya Mall Property Investment Trust; In re: the Trustees for the time being of the Maponya Mall Property Trust v Redefine Retail (Pty) Ltd (018325) [2014] ZACT 60 (5 March 2014)

Redefine Retail (pty) Ltd v the trustees for the time being of the RPJ Maponya Mall Property Investment Trust; In re: the Trustees for the time being of the Maponya Mall Property Trust v Redefine Retail (Pty) Ltd (018325) [2014] ZACT 60 (5 March 2014)

The Tribunal found that the market for rentable retail property in comparative centres within a 16km radius of Maponya Mall is fragmented, with several competitors holding significant market shares. The merged entity's post-merger market share of 23.8% does not confer market dominance, and the accretion is insufficient to substantially prevent or lessen competition. No public interest issues were identified. The transaction is consistent with Redefine's business strategy and allows the Maponya Group to increase its economic interest while enabling existing partners to exit. The Tribunal therefore approved the merger unconditionally.

Citation
[2014] ZACT 60
Parties
Applicant: Redefine Retail (Pty) Ltd; Respondent: Trustees for the time being of the RJP Maponya Mall Property Investment Trust; Respondent: Trustees for the time being of the Maponya Mall Property Trust
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 March 2014
Case Number
018325
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Anton Roskam, Medi Mokuena, Merle Holden
Legal Topics
Merger Control, Retail Property Market, Joint Control, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Retail Property Market Joint Control Market Share Analysis

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Redefine Retail (Pty) Ltd

Applicant

Trustees for the time being of the RJP Maponya Mall Property Investment Trust

Respondent

Trustees for the time being of the Maponya Mall Property Trust

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in the market for rentable comparative centres within a 16km radius of Maponya Mall.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that the market for rentable retail property in comparative centres within a 16km radius of Maponya Mall is fragmented, with several competitors holding significant market shares. The merged entity's post-merger market share of 23.8% does not confer market dominance, and the accretion is insufficient to substantially prevent or lessen competition. No public interest issues were identified. The transaction is consistent with Redefine's business strategy and allows the Maponya Group to increase its economic interest while enabling existing partners to exit. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transactions are approved unconditionally.