Increase in merger thresholds
9/03/2009

The Minister of Trade and Industry has issued Government Notices 215/2009 and 216/2009 containing:

1. A new determination of merger thresholds and method of calculation.

2. A new fee structure for the filing of a merger notice.

In terms of the new thresholds a merger will be notifiable as an intermediate merger if the turnover and/or asset value of the target firm is at least R80 million (currently R30 million), and the combined assets and/or turnover of the acquiring and target firms meets or exceeds R560 million (currently R200 million).

A merger will be notifiable as a large merger if the turnover and/or assets of the target firm is R190 million (currently R100 million) and the combined turnover or assets of the merging parties are at least R6.6 billion (currently R3.5 billion).

The significant increase in merger thresholds will decrease the number of mergers of which notification are required and will lighten the administrative load of the Competition Commission.

The filing fees for intermediate mergers have been increased from R75 000 to R100 000 and for large mergers from R250 000 to R350 000.

The aforementioned changes will come into effect on 1 April 2009. Notice_215.pdf Notice_216.pdf

Alexis Apostolides
Partner
alexis-a@adamsadams.co.za
Adams & Adams
Jac Marais
Senior Associate
jac-m@adamsadams.co.za
Adams & Adams