Competition Commission's revised merger notification thresholds
Competition Commission's revised merger notification thresholds
Podcast
Competition Commission's revised merger notification thresholds
Podcast
Ntobeko explained that the new thresholds represent a significant increase compared to the previous thresholds and are a welcome development for businesses. He noted that, under the old thresholds, some transactions required notification despite barely meeting the previous merger thresholds (and thus arguably being of limited relative economic significance due to the previous threshold not having changed for quite some time) and also posing little risk to competition, resulting in potentially unwarranted regulatory oversight. The revised thresholds are expected to reduce the number of transactions requiring notification, allowing the competition authorities to focus their resources on mergers that are more likely to be economically significant enough to warrant scrutiny.
Ntobeko further pointed out that the previous thresholds were introduced in 2017. Given the time that has elapsed, part of the increase ostensibly reflects inflationary adjustments. However, he noted that the new thresholds seem to exceed what would be expected from inflation alone, making this a substantial change. While the increase is positive for businesses, Ntobeko observed that more frequent incremental adjustments over the years would have been preferable.
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