Unconditional merger approval:
Equites Property Fund Ltd And Retail Logistics Fund (Pty) Ltd
The Competition Tribunal (the Tribunal) has unconditionally approved the merger whereby Equites Property Fund Ltd (Equites) will acquire Retail Logistics Fund (Pty) Ltd (Retail Logistics).
The transaction will include a series of steps which will culminate in Equites acquiring control of Retail Logistics and the acquisition of properties by Retail Logistics.
Equites is a Real Estate Investment Trust (REIT) listed on the JSE. It is not controlled by any single shareholder. Equites owns and develops logistics properties both locally and in the UK for purposes of long-term letting. Within South Africa, Equites owns logistics properties (i.e. distribution centres), non-logistics and commercial properties in Gauteng, the Western Cape and Kwa-Zulu Natal. Its logistics properties in Gauteng and the Western Cape are of relevance for competition assessment in this transaction.
Retail Logistics, a newly incorporated private company wholly owned by Shoprite Checkers (Pty) Ltd (Shoprite), was incorporated for the purpose of establishing a joint venture (JV) between Shoprite and Equites. Currently, Retail Logistics has no business activities. It will own properties (i.e. Brackenfell Property, Cilmor Property and the Centurion Property) comprising distribution centres and warehouses used by Shoprite.
The business of Retail Logistics will entail the acquisition, development, ownership, operation and leasing of retail logistics facilities (i.e. distribution centres) only to Shoprite/its affiliates, or to third party suppliers of Shoprite/its affiliates, as the tenant, and any ancillary business directly related thereto.
The Commission, in its assessment of the transaction, found that there were no competition or public interest concerns.
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