Vukile Property Fund Limited and Others v Protea Glen Shopping Centre (Pty) Limited (LM10APR16) [2016] ZACT 60 (17 September 2016)

Vukile Property Fund Limited and Others v Protea Glen Shopping Centre (Pty) Limited (LM10APR16) [2016] ZACT 60 (17 September 2016)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the market for rentable retail space within a 15km radius of the Protea Glen Shopping Centre, as the merged entity would hold a modest market share and remain constrained by other competitors. The Tribunal concurred with the Commission's assessment that the co-ownership agreement could create a risk of anti-competitive information exchange between the acquiring firms, who compete outside the target property. To address this, the Tribunal approved the transaction subject to conditions designed to prevent the sharing of competitively sensitive information. No public interest concerns,...

Citation
[2016] ZACT 60
Parties
Applicant: Vukile Property Fund Limited; Applicant: Diecel Trade & Invest (Pty) Ltd; Respondent: Protea Glen Shopping Centre (Pty) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 September 2016
Case Number
LM010Apr16
Procedural Posture
Merger Application / Approval With Conditions
Outcome
The proposed merger is approved subject to conditions preventing anti-competitive information exchange.
Judges
Norman Manoim, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Horizontal Overlap, Information Exchange, Public Interest, Market Share, Joint Control
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Information Exchange Public Interest Market Share Joint Control

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Parties

Vukile Property Fund Limited

Applicant

Diecel Trade & Invest (Pty) Ltd

Applicant

Protea Glen Shopping Centre (Pty) Limited

Respondent

Procedural Posture

Merger Application / Approval With Conditions

Legal Issues

  1. 1 Whether the proposed acquisition of joint control over Protea Glen Shopping Centre will substantially prevent or lessen competition in the relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.
  3. 3 Whether the co-ownership agreement creates a risk of anti-competitive information exchange between the acquiring firms.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in the market for rentable retail space within a 15km radius of the Protea Glen Shopping Centre, as the merged entity would hold a modest market share and remain constrained by other competitors. The Tribunal concurred with the Commission's assessment that the co-ownership agreement could create a risk of anti-competitive information exchange between the acquiring firms, who compete outside the target property. To address this, the Tribunal approved the transaction subject to conditions designed to prevent the sharing of competitively sensitive information. No public interest concerns,...

Court Disposition

The proposed merger is approved subject to conditions preventing anti-competitive information exchange.

Orders

  • The merger between Vukile Property Fund Limited, Diecel Trade & Invest (Pty) Ltd, and Protea Glen Shopping Centre (Pty) Limited is approved subject to the conditions set out in Annexure 'A'.