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South Africa – increase in merger notification thresholds and filing fees

The threshold for notifying mergers to the Competition Commission has been lifted to R600m from R560m in combined turnover or assets.

 

The office of the Minister of Economic Development published Government Notices 1003 and 1005 on 15 September 2017, reflecting new thresholds for intermediate mergers and new filing fees payable for intermediate and large mergers.

 

Intermediate merger notification thresholds

 

Effective 1 October 2017, it will only be mandatory to notify mergers where:

 

• the combined annual turnover in, into or from South Africa of the acquiring firms and the target firms is valued at ZAR 600 million (increased from ZAR 560 million) or more; or
• the combined assets in South Africa of the acquiring firms and the target firms are valued at ZAR 600 million (increased from ZAR 560 million) or more; or
• the annual turnover in, into or from South Africa of the acquiring firms plus the assets in South Africa of the target firms is valued at ZAR 600 million (increased from ZAR 560 million) or more; or
• the annual turnover in, into or from South Africa of the target firms plus the assets in South Africa of the acquiring firms is valued at ZAR 600 million (increased from ZAR 560 million) or more.

 

In addition:

 

• the annual turnover in, into or from South Africa of the target firms must be ZAR 100 million (increased from ZAR 80 million) or more; or
• the asset value of the target firm must be ZAR 100 million (increased from ZAR 80 million) or more.

 

The thresholds for large mergers remain unchanged.

 

Filing fees

 

Also effective from 1 October 2017, the filing fees payable for intermediate mergers will be ZAR 150 000 (up from ZAR 100 000) and the filing fees payable for large mergers will be ZAR 500 000 (up from ZAR 350 000).