Redfine Properties Ltd v Fin Properties 107 (Pty) Ltd (56/LM/JUL11) [2011] ZACT 77 (6 October 2011)

Redfine Properties Ltd v Fin Properties 107 (Pty) Ltd (56/LM/JUL11) [2011] ZACT 77 (6 October 2011)

The Tribunal found that the merger between Redefine Properties Ltd and Fin Properties 107 (Pty) Ltd, involving a 50% undivided share in the Dawn Distribution Centre, would not result in a substantial prevention or lessening of competition in the market for rentable light industrial space in the Greater Germiston node. The post-merger market share was low (6.73%), and there were other significant competitors in the market. The transaction did not raise any public interest concerns, including employment losses, and the sole tenant's lease was protected for the next 12 years. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2011] ZACT 77
Parties
Applicant: Redefine Properties Ltd; Respondent: Fin Properties 107 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 October 2011
Case Number
56/LM/JUL11
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Medi Mokuena
Legal Topics
Large Merger, Market Share Analysis, Joint Control, Public Interest, Property Investment
Competition Law Commercial and Corporate Large Merger Market Share Analysis Joint Control Public Interest Property Investment

Case Brief

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Parties

Redefine Properties Ltd

Applicant

Fin Properties 107 (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the market for rentable light industrial space in the Greater Germiston node.
  2. 2 Whether the transaction raises any public interest concerns, including employment losses.

Ratio Decidendi

The Tribunal found that the merger between Redefine Properties Ltd and Fin Properties 107 (Pty) Ltd, involving a 50% undivided share in the Dawn Distribution Centre, would not result in a substantial prevention or lessening of competition in the market for rentable light industrial space in the Greater Germiston node. The post-merger market share was low (6.73%), and there were other significant competitors in the market. The transaction did not raise any public interest concerns, including employment losses, and the sole tenant's lease was protected for the next 12 years. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Redefine Properties Ltd and Fin Properties 107 (Pty) Ltd is approved without conditions.