Resilient Properties (Pty) Ltd v Pangbourne Properties Ltd (77/LM/Sep11) [2011] ZACT 87 (26 October 2011)

Resilient Properties (Pty) Ltd v Pangbourne Properties Ltd (77/LM/Sep11) [2011] ZACT 87 (26 October 2011)

The Tribunal found that the proposed merger between Resilient Properties and Pangbourne Properties in respect of Boardwalk Shopping Centre does not result in a substantial prevention or lessening of competition in the market for retail space in the Richards Bay node. There is no geographic overlap in the activities of the merging parties, and the vertical relationship between them is minimal and does not result in foreclosure. The transaction raises no public interest concerns. The Tribunal agreed with the Competition Commission's recommendation and approved the merger without conditions.

Citation
[2011] ZACT 87
Parties
Applicant: Resilient Properties (Pty) Ltd; Respondent: Pangbourne Properties Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 October 2011
Case Number
77/LM/Sep11
Procedural Posture
Large Merger Review / Approval
Outcome
Merger approved without conditions.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Large Merger, Retail Property Market, Vertical Relationships, Public Interest, Foreclosure, Market Overlap
Competition Law Commercial and Corporate Large Merger Retail Property Market Vertical Relationships Public Interest Foreclosure Market Overlap

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Parties

Resilient Properties (Pty) Ltd

Applicant

Pangbourne Properties Ltd

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger between Resilient Properties and Pangbourne Properties would substantially prevent or lessen competition in the market for retail space in the Richards Bay node.
  2. 2 Whether the vertical relationship between the merging parties would result in foreclosure.
  3. 3 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed merger between Resilient Properties and Pangbourne Properties in respect of Boardwalk Shopping Centre does not result in a substantial prevention or lessening of competition in the market for retail space in the Richards Bay node. There is no geographic overlap in the activities of the merging parties, and the vertical relationship between them is minimal and does not result in foreclosure. The transaction raises no public interest concerns. The Tribunal agreed with the Competition Commission's recommendation and approved the merger without conditions.

Court Disposition

Merger approved without conditions.

Orders

  • The large merger between Resilient Properties (Pty) Ltd and Pangbourne Properties Ltd in respect of Boardwalk Shopping Centre is approved without conditions.