The COMESA Council of Ministers has significantly reduced the maximum merger filing fee and introduced thresholds for filings.
Where both the acquiring firm and the target firm, or either the acquiring firm or the target firm, operate in two or more COMESA Member States, a merger is notifiable if:
- the combined annual turnover or combined value of assets, whichever is higher, in COMESA of all parties to a merger equals or exceeds USD50m; and
- the annual turnover or value of assets, whichever is higher, in COMESA of each of at least two of the parties to a merger equals or exceeds USD10m, unless each of the parties to a merger achieves at least two-thirds of its aggregate turnover or assets in COMESA within one and the same COMESA Member State.
The maximum filing fee has been substantially reduced – the filing fee is now the higher of 0.1% of the combined annual turnover or combined asset value in COMESA, capped at a maximum of USD 200,000. These amendments were published on 8 April 2015.
Companies planning a merger or acquisition in any of the COMESA states (Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe) should assess at an early stage whether a notification to COMESA may be required.
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