Change in financial thresholds and filing fees for Notifiable Transactions
In terms of the Competition Act, 1998, all transactions which create an acquisition of control and which meet the prescribed financial thresholds must be formally notified to the Competition Commission prior to implementation.
On 1 April 2009, the prescribed financial thresholds (see Government Notice 216 of 2009) and filing fees (see Government Notice 215 of 2009) will be amended as follows:
Intermediate merger thresholds
A transaction which meets the following lower thresholds will be considered to be an intermediate merger and will require the approval of the Competition Commission prior to implementation:
- The turnover or gross asset value (whichever value is the higher) of the target firm is equal to or exceeds R80 million; and
- The combined turnover or gross asset value (whichever value is the higher) of both the acquiring firm and the target firm is equal to or exceeds R560 million.
Large merger thresholds
A transaction which meets the following higher thresholds will be considered to be a large merger and will require the approval of the Competition Tribunal prior to implementation:
- The turnover or gross asset value (whichever value is the higher) of the target firm is equal to or exceeds R190 million; and
- The combined turnover or gross asset value (whichever value is the higher) of both the acquiring firm and the target firm is equal to or exceeds R6.6 billion.
Filing fees
The filing fees for an intermediate merger will be R100 000 (increased from R75 000) and for a large merger will be R350 000 (increased from R250 000).
Bear in mind that there is a prescribed method of calculation set out in Government Notice 216 of 2009 to be applied when determining whether the financial thresholds will be met or exceeded.
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