Vukile Property Fund Limited v SA Retail Properties (Proprietary) Limited ; In respect of the enterprise known as Pinecrest Centre (LM256Mar16) [2016] ZACT 42 (11 May 2016)

Vukile Property Fund Limited v SA Retail Properties (Proprietary) Limited ; In respect of the enterprise known as Pinecrest Centre (LM256Mar16) [2016] ZACT 42 (11 May 2016)

The Tribunal found that there is no horizontal overlap between the target property and Vukile's existing properties in KwaZulu-Natal. Vertically, although Vukile has property management capabilities, Broll Properties Group will continue to manage Pinecrest Centre post-merger, eliminating vertical concerns. The Commission concluded, and the Tribunal concurred, that the transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2016] ZACT 42
Parties
Applicant: Vukile Property Fund Limited; Respondent: SA Retail Properties (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 May 2016
Case Number
LM256Mar16
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed transaction is approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Andiswa Ndoni
Legal Topics
Merger Control, Substantial Prevention or Lessening of Competition, Public Interest, Property Management Services
Competition Law Commercial and Corporate Merger Control Substantial Prevention or Lessening of Competition Public Interest Property Management Services

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Parties

Vukile Property Fund Limited

Applicant

SA Retail Properties (Proprietary) Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition by Vukile Property Fund Limited of an undivided half share in Pinecrest Centre will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any significant public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap between the target property and Vukile's existing properties in KwaZulu-Natal. Vertically, although Vukile has property management capabilities, Broll Properties Group will continue to manage Pinecrest Centre post-merger, eliminating vertical concerns. The Commission concluded, and the Tribunal concurred, that the transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merging parties confirmed that there would be no adverse impact on employment or other public interest concerns. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Vukile Property Fund Limited and SA Retail Properties (Proprietary) Limited in respect of Pinecrest Centre is approved without conditions.