South Africa Competition Act 89 of 1998 13A: Intermediate and large mergers: notify, inform employees or unions, and do not implement before approval

What does 13A require?

A party to an intermediate or large merger must file the prescribed notification with the Commission, and the primary acquiring firm and primary target firm must each give a copy of the notice to a registered trade union representing much of its workforce or, failing a union, to the employees or their representatives (section 13A(1) and (2)). The merger may not be implemented until the Commission (intermediate), the Tribunal (large) or the Competition Appeal Court has approved it, conditionally or unconditionally (section 13A(3)). Implementing without approval, in breach of a prohibition or contrary to a condition exposes the parties to an administrative penalty of up to 10 per cent of turnover and to divestiture orders (sections 59(1)(d) and 60(1)).