Redfine Properties Ltd v Rowmoor Investments 567 (Pty) Ltd (41/LM/MAY11) [2011] ZACT 48 (11 July 2011)

Redfine Properties Ltd v Rowmoor Investments 567 (Pty) Ltd (41/LM/MAY11) [2011] ZACT 48 (11 July 2011)

The Tribunal found that the activities of the merging parties overlap horizontally in the market for rentable retail space in Pretoria. Using the Independent Property Databank’s retail property classification, the combined portions of Sammy Marks Square constitute a minor regional centre. The Tribunal determined that, regardless of the precise market definition, the merged entity's market share remains low and the transaction is unlikely to result in a substantial prevention or lessening of competition. Furthermore, the transaction does not raise any public interest concerns, as no job losses will occur and no other issues were identified. Accordingly, the Tribunal approved the merger...

Citation
[2011] ZACT 48
Parties
Applicant: Redefine Properties Ltd; Respondent: Rowmoor Investments 567 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 July 2011
Case Number
41/LM/MAY11
Procedural Posture
Merger Control / Approval of Proposed Merger
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Market Definition, Public Interest, Horizontal Overlap
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Horizontal Overlap

Case Brief

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Parties

Redefine Properties Ltd

Applicant

Rowmoor Investments 567 (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval of Proposed Merger

Legal Issues

  1. 1 Whether the proposed acquisition of Sammy Marks Portion 2 by Redefine Properties Ltd is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the activities of the merging parties overlap horizontally in the market for rentable retail space in Pretoria. Using the Independent Property Databank’s retail property classification, the combined portions of Sammy Marks Square constitute a minor regional centre. The Tribunal determined that, regardless of the precise market definition, the merged entity's market share remains low and the transaction is unlikely to result in a substantial prevention or lessening of competition. Furthermore, the transaction does not raise any public interest concerns, as no job losses will occur and no other issues were identified. Accordingly, the Tribunal approved the merger...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Redefine Properties Ltd and Rowmoor Investments 567 (Pty) Ltd in respect of Sammy Marks Portion 2 is approved without conditions.