COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA
Case no: 40/LM/May05
In The Large Merger Between:
Liberty Group Limited Acquiring Firm
And
Wedelin Investments (Pty) Ltd Target Firm
Reasons for Decision
Approval
On 25 May 2005 the Competition Tribunal issued a Merger Clearance Certificate approving the
transaction between Liberty Group Limited and Wedelin Investments (Pty) Ltd. The reasons for
this decision follow.
The Merger Transaction
The primary acquiring firm is Liberty Group Limited (“Liberty”), which is controlled by Liberty
Holdings Limited, which in turn is controlled by Standard Bank Group Limited (collectively
referred to as “the acquiring group”).
The primary target firm is Wedelin Investments (Pty) Ltd (“Wedelin”). 70% of Wedelin’s entire
issued share capital is held by Executive Investment Portfolio Company (Pty) Ltd. 1 Wedelin’s
only asset is a portion of land in Mitchell’s Plain, Cape Town, on which the Promenade
Shopping Centre (“Promenade”) has been constructed
The transaction involves Liberty acquiring the entire issued share capital of Wedelin. Liberty will
accordingly acquire control of Promenade. According to the parties, the acquisition of Wedelin
will help it diversify its property portfolio.
The Parties’ Activities
As stated above, Wedelin’s only asset is Promenade which comprises rentable retail property
space.
The acquiring group is active in the broader banking and nonfinancial services, including
1 The remaining shares are held by Propalux 183 (Pty) Ltd and Richter van Niekerk Properties CC.
interest in the retail property sector. Although the acquiring group has several retail properties
across South Africa, it does not own property in the Mitchell’s Plain area. It does however, own
and lease two retail properties in Belville, Cape Town. 2
Impact on competition
According to the Commission, because Belville and Mitchell’s Plain are not in the same
geographic market, the transaction does not result in a geographic overlap in the activities of the
parties.
We do not find it necessary to make a definitive finding on the relevant markets, as we
are of the view that the merger will not result in a substantial lessening of competition.
We have no other concerns and are satisfied that there are no significant public interest
issues, which arise, and we accordingly approve this transaction unconditionally.
10 June 2005
D Lewis Date
Concurring: N Manoim and M Moerane
For the merging parties: D Rudman and P Stein (Werksmans)
For the Commission: M Matsimela (Mergers and Acquisitions)
2 Middestad Mall in Charl Malan Street as well as the premises occupied by Beares in Durban Road.
2