COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No.: LM026May21
In the matter between:
Community Property Company (Pty) Ltd Primary Acquiring Firm
And
Ulundi King Senzangakona currently owned by
Vukile Property Fund Limited
Primary Target Firm
Panel: M Mazwai (Presiding Member)
F Tregenna (Tribunal Panel Member)
T Vilakazi (Tribunal Panel Member)
Heard on: 23 June 2021
Order Issued on: 23 June 2021
ORDER
Further to the recommendation of the Competition Commission in terms of section
14A(1)(b) of the Competition Act, 1998 (“the Act”) the Competition Tribunal orders that–
1. the merger between the abovementioned parties be approved in terms of section
16(2)(a) of the Act; and
2. a Merger Clearance Certificate be issued in terms of Competition Tribunal Rule
35(5)(a).
23 June 2021
Presiding Member
Ms M Mazwai
Date
Concurring: Prof. Fiona Tregenna and Dr Thando Vilakazi
Date : 23 June 2021
To : Cliffe Dekker Attorneys
Case Number: LM026May21
Community Property Company (Pty) Ltd And Ulundi King
Senzangakona Vukile Currently Owned by Property Fund Ltd
You applied to the Competition Commission on 19 May 2021 for
merger approval in accordance with Chapter 3 of the Competition
Act.
Your merger was referred to the Competition Tribunal in terms of
section 14A of the Act, or was the subject of a Request for
consideration by the Tribunal in terms of section 16(1) of the Act.
After reviewing all relevant information, and the recommendation
or decision of the Competition Commission, the Competition
Tribunal approves the merger in terms of section 16(2) of the Act,
for the reasons set out in the Reasons for Decision.
This approval is subject to:
x no conditions.
the conditions listed on the attached sheet.
The Competition Tribunal has the authority in terms of section 16(3)
of the Competition Act to revoke this approval if
a) it was granted on the basis of incorrect information for which
a party to the merger was responsible.
b) the approval was obtained by deceit.
c)a firm concerned has breached an obligation attached to
this approval.
The Registrar, Competition Tribunal
Notice CT 10
About this Notice
This form is prescribed by the Minister of Trade and Industry in terms of section 27 (2) of the Competition Act 1998 (Act No. 89 of 1998).
Contacting
the Tribunal
The Competition Tribunal
Private Bag X24
Sunnyside
Pretoria 0132
Republic of South Africa
tel: 27 12 394 3300
fax: 27 12 394 0169
e-mail: ctsa@comptrib.co.za
Merger Clearance Certificate
This notice is issued in
terms of section 16 of
the Competition Act.
You may appeal
against this decision to
the Competition
Appeal Court within 20
business days.
1
COMPETITION TRIBUNAL OF SOUTH AFRICA
Case no: LM026May21
In the large merger between:
Community Property Company (Pty) Ltd (Primary Acquiring Firm)
And
Ulundi King Senzangakona currently owned by Vukile
Property Fund Limited (Primary Target Firm)
Heard on: 23 June 2021
Order Issued on:
23 June 2021
REASONS FOR DECISION
[1] On 23 June 2021, the Competition Tribunal unconditionally approved the large merger
between Community Property Company (Pty) Ltd (“CPC”) and the letting enterprise
known as Ulundi King Senzangakona Shopping Centre, owned by Vukile Property
Fund Limited (the “target property”). The target property is located at King
Dinuzulu/Princess Magogo Street in Ulundi, northern Kwa-Zulu Natal.
[2] The transaction involves CPC acquiring the target property from Vukile Property Fund
Limited, such that CPC will have sole control over the target property post-merger.
[3] CPC is ultimately controlled by Old Mutual Limited ("OML"). 1 The acquiring group
through CPC is a property fund with a portfolio made up entirely of retail property,
primarily community, small regional and r egional shopping centres in rural and
township areas in all nine provinces.
[4] The target property is a community centre with a gross lettable area (“GLA”) of
22 365m2. It consists of various components such as the main linear mall with line
shops, a formal taxi rank, a KFC drive through and a fast-food court.2
[5] The Competition Commission (“Commission”) found a horizontal overlap in the
activities of the merging parties as they are both active in the provision of lettable retail
property. However, the Commission found no geographic overlap as the acquiring
group does not own lettable centres within a 15km radius of the target property.3
1 OML controls several firms in South Africa, and is not controlled by any individual shareholder.
2 The target property also houses anchor stores such as Spar, Game and Cashbuild , as well as othe r
tenants that are well-known stores.
3 The nearest lettable retail property owned by the acquiring group is incomparable as it is 70kms away
from the target property, and is a convenience centre with a maximum GLA of 5 000m2.
2
[6] The Commission concluded that the proposed transaction is unlikely to substantially
prevent or lessen competition as there is no geographic overlap between the activities
of the merging parties . The Commission also found that the proposed transaction is
unlikely to change the structure of the market for comparative rentable shopping
centres in Ulundi.
[7] The Commission found that concerns raised by third parties relating to lease
negotiations and the management of the target property, were either unaffected by the
proposed transaction, or had no bearing on competition or the public interest.
[8] In relation t o public interest consideration s, the Commission contacted the target
property’s employee representative who confirmed that the employees were informed
of the proposed transaction and raised no concerns. The Commission found that CPC
does not have any employees.
[9] We also note that the merging parties provided an unequivocal statement that the
proposed transaction w ould have no effect on employment , p articularly no
retrenchments or job losses.
[10] We conclude d that the proposed transaction is unlikely to substantially prevent or
lessen competition in any relevant market, or to have a negative impact on the public
interest.
23 June 2021
Ms Mondo Mazwai Date
Prof. Fiona Tregenna and Dr Thando Vilakazi concurring.
Tribunal Case Manager: Peter Kumbirai
For the Merging Parties: Albert Aukema of Cliffe Dekker Hofmeyr Inc
For the Commission: Yolanda Okharedia and Themba Mahlangu