Most Read Contributor in South Africa, September 2016
Mr Willard Mwemba, the Head of Mergers and Acquisitions for the
COMESA Competition Commission ("CCC")
has confirmed that COMESA will introduce amended rules to the
COMESA Competition Regulations (the
"Amendment"), which rules will establish
monetary thresholds for merger notifications and lower merger
filing fees. The Amendment brings about significant relief and
certainty to firms doing business in the COMESA Common Market (the
"Common Market") and is imminently due
to come into effect.
Prior to the Amendment the monetary thresholds for merger
notifications for transactions in the Common Market are set at
zero. Mr Willard Mwemba explained that the monetary thresholds
will, post the Amendment, only be met where the combined annual
turnover or value of assets (whichever is higher) of the merging
parties in the Common Market equals or exceeds US$50 million
and where each of the merging parties have an annual
turnover or asset value in the Common Market of at least US$10
In addition to the above, the Amendment brings about a
significant reduction in merger filing fees. The filing fee is
prior to the Amendment calculated at 0.5% of the combined annual
turnover or combined asset value (whichever is higher) of the
merging parties in the Common Market, capped at a maximum fee of
US$500 000. The filing fee post the Amendment is to be
calculated at 0.1% of the combined annual turnover or combined
asset value (whichever is higher) of the merging parties in the
Common Market, capped at a maximum fee of US$200 000.
The Amendment will come into effect once it and its effective
date have been published in the Official Gazette for COMESA. Whilst
Mr Willard Mwemba was unable to indicate when such date would be,
he advised that the CCC may, in practice, start implementing the
Amendment and merging parties should contact the CCC for guidance
in the interim.
*COMESA is the Common Market for Eastern and
Southern Africa. COMESA comprises the following Member States:
Burundi, Comoros, D.R. Congo, Djibouti, Egypt, Eritrea, Ethiopia,
Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles,
Sudan, Swaziland, Uganda, Zambia and Zimbabwe.
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