The Minister of Economic Development Ebrahim Patel has announced amendments to the merger thresholds and an increase in the merger filing fees.
With effect from 1 October 2017, the merger thresholds will be as follows:
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For intermediate mergers, a combined annual turnover/asset value of the acquirer and the target (in whichever combination reaches the highest figure) of ZAR600 million (up from ZAR560 million) and a target firm asset value/annual turnover of ZAR100 million (previously ZAR80 million).
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Large merger thresholds remain unchanged at a combined annual turnover/asset value of ZAR6.6 billion and a target firm asset value/annual turnover of ZAR190 million.
The fees for filing a merger will be increased as follows:
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For intermediate mergers: ZAR150 000 (previously ZAR100 000).
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For large mergers: ZAR500 000 (previously ZAR350 000).
In addition to the above amendments, the Minister has proposed amendments to the method of calculation used for the purposes of calculating the asset value or the turnover of a firm for purposes of merger notification. The public has thirty days to comment on these proposals.
The relevant notices are available on www.gpwonline.co.za.
