SA Retail Properties (Pty) Ltd v Silver Crown Trading 27 (Pty) Ltd, Storage Genie (Pty) Ltd and related parties in respect of six storage unit properties (LM2180ct17) [2018] ZACT 44; [2018] 1 CPLR 326 (CT) (23 March 2018)

Parties

Procedural Posture

Merger Application / Conditional Approval

Legal Issues

1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the relevant self-storage markets.
2. 2 Whether the merger raises any public interest concerns, including employment effects.
3. 3 Whether the notification remedy for future acquisitions adequately addresses competition concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction is unlikely to substantially prevent or lessen competition in the relevant self-storage markets, based on market share analysis and the presence of competitors within the geographic areas concerned. For the Cresta facility, despite a relatively high market share, sufficient competition exists within a 10 km radius. For Sebenza, the merged entity's market share is below 20%. The Tribunal imposed conditions requiring notification of future acquisitions of storage sites under the partnership arrangement for seven years, addressing the Commission's concerns about uncertainty in future competitive effects. No adverse public interest effects,...

Court Disposition

The merger is conditionally approved subject to notification remedies for future acquisitions of storage sites.

Orders

• The merging parties must, for seven years from implementation, inform the Commission in writing of any sale of a future storage site defined as a small merger within ten days of concluding any sale agreement.
• Upon receipt of such notice, the Commission may require notification of the small merger in terms of the Act.