Vukile Property Fund Limited v Sasol Pension Fund, in respect of the letting enterprise known as Kolonnade Retail Park (LM175Sep18) [2018] ZACT 56 (29 October 2018)

Vukile Property Fund Limited v Sasol Pension Fund, in respect of the letting enterprise known as Kolonnade Retail Park (LM175Sep18) [2018] ZACT 56 (29 October 2018)

The Tribunal found that there is no geographical overlap between the properties owned by Vukile and the Target Property, as the nearest Vukile property is located 32km away. Competing retail properties are situated within a 20km radius of the Target Property, and Vukile does not own any properties within this competitive catchment area. Therefore, the transaction does not result in a substantial prevention or lessening of competition. Furthermore, the merging parties confirmed that there would be no negative impact on employment or other public interest concerns. The Tribunal concurred with the Competition Commission's findings and approved the transaction unconditionally.

Citation
[2018] ZACT 56
Parties
Applicant: Vukile Property Fund Limited; Respondent: Sasol Pension Fund, in respect of the letting enterprise known as Kolonnade Retail Park
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 October 2018
Case Number
LM175Sep18
Procedural Posture
Merger Control / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Halton Cheadle
Legal Topics
Merger Control, Horizontal Overlap, Public Interest, Retail Property Market
Competition Law Merger Control Horizontal Overlap Public Interest Retail Property Market

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Parties

Vukile Property Fund Limited

Applicant

Sasol Pension Fund, in respect of the letting enterprise known as Kolonnade Retail Park

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of Kolonnade Retail Park by Vukile Property Fund Limited will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including effects on employment.

Ratio Decidendi

The Tribunal found that there is no geographical overlap between the properties owned by Vukile and the Target Property, as the nearest Vukile property is located 32km away. Competing retail properties are situated within a 20km radius of the Target Property, and Vukile does not own any properties within this competitive catchment area. Therefore, the transaction does not result in a substantial prevention or lessening of competition. Furthermore, the merging parties confirmed that there would be no negative impact on employment or other public interest concerns. The Tribunal concurred with the Competition Commission's findings and approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The proposed acquisition of Kolonnade Retail Park by Vukile Property Fund Limited is approved without conditions.