Vukile Property Fund Ltd v Redefine Retail (Pty) Ltd (110/LM/Dec12) [2013] ZACT 13 (8 March 2013)

Vukile Property Fund Ltd v Redefine Retail (Pty) Ltd (110/LM/Dec12) [2013] ZACT 13 (8 March 2013)

The Tribunal found that although there is a horizontal overlap between the merging parties in the provision of rentable retail space in regional shopping centres, the merged entity's market share within a 10 to 15 km radius from the East Rand Mall would be less than 10%. Even if a broader geographic market is considered, the merged entity's market position remains small. The Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merger does not raise any public interest concerns, including adverse effects on employment. Accordingly, the merger was approved unconditionally.

Citation
[2013] ZACT 13
Parties
Applicant: Vukile Property Fund Limited; Respondent: Redefine Retail (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 March 2013
Case Number
110/LM/Dec12
Procedural Posture
Merger Approval / Final Determination
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Anton Roskam, Mondo Mazwai
Legal Topics
Merger Control, Horizontal Overlap, Market Definition, Public Interest, Joint Control
Competition Law Merger Control Horizontal Overlap Market Definition Public Interest Joint Control

Case Brief

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Parties

Vukile Property Fund Limited

Applicant

Redefine Retail (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of a 50% share in the East Rand Mall by Vukile Property Fund Limited will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap between the merging parties in the provision of rentable retail space in regional shopping centres, the merged entity's market share within a 10 to 15 km radius from the East Rand Mall would be less than 10%. Even if a broader geographic market is considered, the merged entity's market position remains small. The Tribunal concluded that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, the merger does not raise any public interest concerns, including adverse effects on employment. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Vukile Property Fund Limited and Redefine Retail (Pty) Ltd in respect of an undivided 50% share in the East Rand Mall is approved without conditions.