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COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No. 110/LM/Dec12
016097
In the matter between:
Vukile Property Fund Limited
Acquiring Firm
And
Redefine Retail
(Pty) Ltd in respect of an Target Firm
undivided 50% share in the property letting
enterprise known as the East Rand Mall
Panel : Andreas Wessels (Presiding Member)
Anton Roskam (Tribunal Membe r)
Mondo Mazwai (Tribunal Member)
Heard on : 19 February 2013
Order issued on : 19 February 2013
Reasons issued on : 08 March 2013
Reasons for Decision
Approval
[1] On 19 February 2013 the Competition Tribunal (“ Tribunal”) approved the
merger involving Vukile Property Fund Limited (“Vuk ile”) and Redefine Retail
(Pty) Ltd (“Redefine Retail”) in respect of an undi vided 50% share in the
property letting enterprise known as the East Rand Mall.
[2] The reasons for approving the proposed transaction follow below.
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Parties to transaction
[3] The primary acquiring firm is Vukile, a company incorporated in terms of the
laws of the Republic of South Africa. Vukile is a p roperty fund which is listed
on the JSE Limited and the Namibian Stock Exchange. The Fund is held by
numerous shareholders. Vukile owns and operates a d iversified property
portfolio which includes office, industrial and ret ail properties, with a special
emphasis on the retail sector.
[4] The primary target firm is Redefine Retail in r espect of an undivided 50%
share in the property letting enterprise known as t he East Rand Mall. The
East Rand Mall is a shopping centre categorised as a major regional centre
situated in the Boksburg and surrounds node.
Proposed transaction and rationale
[5] In terms of the proposed transaction Vukile wil l acquire an undivided 50%
share in the property letting enterprise referred t o as the East Rand Mall from
Redefine Retail 1. Pursuant to the transaction, Vukile and Redefine Retail will
have joint control over the East Rand Mall.
[6] The proposed transaction is in line with Vukile ’s objective of building a quality
portfolio of properties and will increase its expos ure in the Boksburg and
surrounds node.
Relevant market and impact on competition
[7] The Commission concluded that there is a horizo ntal overlap between the
activities of the merging parties since both parties are involved in the provision
of rentable retail space in regional shopping centres. The Commission defined
the relevant geographic market as a 10 to 15 km rad ius from the target
property. Vukile owns inter alia the Meadowdale Mall which is located within a
10 km radius from the East Rand Mall.
[8] There is however no need for us in this case to take a definitive view on the
exact parameters of the relevant geographic market. If a 10 to 15 km radius
1 See Tribunal case no: 111/LM/Dec12. This transaction was approved by the Tribunal on 19
February 2013.
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from the target property is considered, then the me rged entity’s market share
will be less than 10%. If a broader geographic mark et is considered, then the
merged entity’s market position remains small.
[9] We conclude that that the proposed transaction is unlikely to substantially
prevent or lessen competition in any relevant market.
Public interest
[10] The merging parties submitted that the propose d transaction will not result in
any adverse effect on employment.2 Furthermore, the proposed merger raises
no other public interest concerns.
CONCLUSION
[11] We approve the merger unconditionally.
____________________ 08 March 2013
Andreas Wessels DATE
Anton Roskam and Mondo Mazwai concurring
Tribunal researcher: Caroline Sserufusa
For the merging parties:
Vani Chetty of Vani Chetty Competition Law
For the Commission: Zanele Hadebe
2 Merger record pages 14 and 72.