Legal Alert | Fair Competition Commission Merger Notification

The Tanzania Government has passed the Fair Competition (threshold for Notification of a Merger) (Amendment) Order, 2017 (the Order). The Order amends the Fair Competition (threshold for Notification of a Merger) Order, 2006 which sets out the thresholds for a merger that are notifiable to the Fair Competition Commission (the FCC) as well as the mechanics of calculation of that threshold.

In line with the Order, the merger notification threshold has been changed from TZS 800 million (approx. USD 360,000) to TZS 3.5 billion (approx. USD 1.6 million). Furthermore the calculation of the said threshold is to be based on the combined market value of the assets or turnover of the merging firms.

This is a positive move and it comes on the back of discussions, requests and recommendations that have been put forward to the FCC to have the threshold increased as it had the effect of capturing most transactions that were taking effect despite that fact that their impact to competition was minimal.

If you have any questions regarding this legal alert, please contact Sonal Sejpal or Shamiza Ratansi or any member of the Competition Team

For more information about ATZ Law Chambers, please visit our website.

 
Sonal Sejpal
Director
ss@africalegalnetwork.com
 
Shamiza Ratansi
Managing Partner
snr@tz.africalegalnetwork.com

The content of this alert is intended to be of general use only and should not be relied upon without seeking specific legal advice on any matter.