Redfine Properties Ltd v Six Letting Enterprises held by Cool Ideas 208 (Pty) Ltd and Others (94/LM/Nov11) [2011] ZACT 107 (21 December 2011)

Redfine Properties Ltd v Six Letting Enterprises held by Cool Ideas 208 (Pty) Ltd and Others (94/LM/Nov11) [2011] ZACT 107 (21 December 2011)

The Tribunal found that although the transaction resulted in a horizontal overlap in the market for light industrial property in the nodes of Longmeadow, Jet Park, and Spartan, the merged entity's post-merger market shares remained low. The presence of other significant competitors in the relevant nodes, such as...

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Citation
[2011] ZACT 107
Parties
Applicant: Redefine Properties Limited; Respondent: Six Letting Enterprises held by Cool Ideas 208 (Pty) Ltd, Improvon Property Fund 1 (Pty) Ltd, Improvon Growth Fund (Pty) Ltd, Wavelength 124 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 December 2011
Case Number
94/LM/Nov11
Procedural Posture
Large Merger / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Review, Horizontal Overlap, Market Share Analysis, Public Interest, Property Sector Competition
Competition Law Commercial and Corporate Merger Review Horizontal Overlap Market Share Analysis Public Interest Property Sector Competition

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Parties

Redefine Properties Limited

Applicant

Six Letting Enterprises held by Cool Ideas 208 (Pty) Ltd, Improvon Property Fund 1 (Pty) Ltd, Improvon Growth Fund (Pty) Ltd, Wavelength 124 (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the market for light industrial property in the relevant geographic nodes.
  2. 2 Whether the transaction raises any public interest concerns, including employment losses.

Ratio Decidendi

The Tribunal found that although the transaction resulted in a horizontal overlap in the market for light industrial property in the nodes of Longmeadow, Jet Park, and Spartan, the merged entity's post-merger market shares remained low. The presence of other significant competitors in the relevant nodes, such as Growthpoint, Sanlam, and Old Mutual, indicated that the transaction would not substantially prevent or lessen competition. Furthermore, the merger did not raise any public interest concerns, including employment losses. The Tribunal accepted the Commission's recommendation and approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Redefine Properties Limited and the six letting enterprises held by Cool Ideas 208 (Pty) Ltd, Improvon Property Fund 1 (Pty) Ltd, Improvon Growth Fund (Pty) Ltd, and Wavelength 124 (Pty) Ltd is approved without conditions.