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South Africa’s merger thresholds and filing fees to rise

On October 1st, the thresholds and filing fees for large and intermediate merger notifications to South Africa’s Competition Commission are set to change. The country’s Ministry of Economic Development published the the details on September 15th.

Mergers classified as intermediate have been set higher notifiability thresholds, with the lower threshold, (determined by whichever is higher – the value of the target’s total asset value or its turnover) now standing at R100 million and the higher threshold, (determined by whichever is higher – the combined asset value or turnover of the acquirer and acquiree), rising to $R600 million. Merger thresholds for large mergers remain the same as before. However, filing fees for both classifications will rise, with intermediate merger notifications costing R150,000 and large merger notifications costing R500,000.

“The revised thresholds are likely aimed at ensuring that the South African competition authorities are charged with considering only material transactions,” Leana Engelbrecht, a Senior Associate in Baker McKenzie’s Johannesburg office said. “The competition authorities have likely noticed that the current thresholds do not appropriately filter out a sufficient number of immaterial transactions, especially in light of the economic changes that have occurred over the past eight years since the current notifiability thresholds came into force.”

 

 

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  1. South Africa's merger thresholds and filing fees to riseAfrica Capital Digest - SPE Capital

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