RMB Investments and Advisory (Pty) Ltd and Another v Trustees for the time being of Truzen 89 Trust in respect of the property letting enterprise known as Mall of the South (LM145Oct20) [2020] ZACT 50 (10 December 2020)

RMB Investments and Advisory (Pty) Ltd and Another v Trustees for the time being of Truzen 89 Trust in respect of the property letting enterprise known as Mall of the South (LM145Oct20) [2020] ZACT 50 (10 December 2020)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the market for rentable retail space in regional and comparative centres at Aspen Lakes Extension 12, Gauteng. The merged entity's market share post-merger would be 13.90%, with an accretion of 4.60%, and sufficient competition would remain from other retail property owners. Furthermore, the transaction would not result in any retrenchments or job losses, as all employees would be transferred in accordance with Section 197 of the Labour Relations Act. No other public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2020] ZACT 50
Parties
Applicant: RMB Investments and Advisory (Pty) Ltd; Applicant: Redefine Properties Limited; Respondent: Trustees for the time being of Truzen 89 Trust
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 December 2020
Case Number
LM145Oct20
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
Yasmin Carrim, Fiona Tregenna, Thando Vilakazi
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Market Share Calculation
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Public Interest Market Share Calculation

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Parties

RMB Investments and Advisory (Pty) Ltd

Applicant

Redefine Properties Limited

Applicant

Trustees for the time being of Truzen 89 Trust

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed transaction will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment impacts.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the market for rentable retail space in regional and comparative centres at Aspen Lakes Extension 12, Gauteng. The merged entity's market share post-merger would be 13.90%, with an accretion of 4.60%, and sufficient competition would remain from other retail property owners. Furthermore, the transaction would not result in any retrenchments or job losses, as all employees would be transferred in accordance with Section 197 of the Labour Relations Act. No other public interest concerns were raised. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between RMB Investments and Advisory (Pty) Ltd, Redefine Properties Limited, and the Trustees for the time being of Truzen 89 Trust in respect of Mall of the South is approved without conditions.