Resilient Properties (Pty) Ltd v Ilanga Lifestyle Centre (Pty) Ltd (68/LM/Aug11) [2011] ZACT 85 (25 October 2011)

Resilient Properties (Pty) Ltd v Ilanga Lifestyle Centre (Pty) Ltd (68/LM/Aug11) [2011] ZACT 85 (25 October 2011)

The Tribunal found that the merger between Resilient Properties and Ilanga Lifestyle Centre does not result in any substantial prevention or lessening of competition. The geographic separation between Highveld Mall and Ilanga Mall means there is no competitive overlap, and Resilient's increased shareholding in Ilanga Mall does not affect market concentration in Nelspruit. Furthermore, the transaction does not raise any public interest concerns, including employment effects. The Tribunal agreed with the Commission's assessment and approved the merger unconditionally.

Citation
[2011] ZACT 85
Parties
Applicant: Resilient Properties (Pty) Ltd; Respondent: Ilanga Lifestyle Centre (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 October 2011
Case Number
68/LM/Aug11
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Medi Mokuena
Legal Topics
Large Merger, Market Definition, Public Interest, Joint Control, Property Investment
Competition Law Commercial and Corporate Large Merger Market Definition Public Interest Joint Control Property Investment

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Parties

Resilient Properties (Pty) Ltd

Applicant

Ilanga Lifestyle Centre (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed merger between Resilient Properties (Pty) Ltd and Ilanga Lifestyle Centre (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant market.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the merger between Resilient Properties and Ilanga Lifestyle Centre does not result in any substantial prevention or lessening of competition. The geographic separation between Highveld Mall and Ilanga Mall means there is no competitive overlap, and Resilient's increased shareholding in Ilanga Mall does not affect market concentration in Nelspruit. Furthermore, the transaction does not raise any public interest concerns, including employment effects. The Tribunal agreed with the Commission's assessment and approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Resilient Properties (Pty) Ltd and Ilanga Lifestyle Centre (Pty) Ltd is approved without conditions.