The Competition Commission of South Africa has reaffirmed the transparency and efficiency of its merger regulation process, pushing back against claims that it creates uncertainty for investors.
In response to recurring criticism from segments of the legal and business community, the Competition Commission of South Africa has clarified its approach to merger regulation, emphasizing its dual mandate: to safeguard competition while fostering a growing and deconcentrated economy.
According to Siyabulela Makunga, spokesperson for the Competition Commission of South Africa, much of the negative sentiment stems from misconceptions regarding the timelines for merger reviews. In the 2024/25 financial year, for instance, Phase I (less complex) mergers were concluded in an average of 14 days, Phase II (complex) mergers in 35 days, and Phase III (highly complex) intermediate mergers in 51 days. Even large, highly complex Phase III mergers were finalized in an average of 76 days — well within statutory or internal service standard timelines.
"Over the past five years, we assessed 1,364 mergers. In four of those years, over 50% of all mergers were completed in less than 40 days,"
said Makunga.
The Commission also addressed concerns over the application of public interest provisions during merger reviews — another area cited by stakeholders as needing clarity and consistency. Makunga emphasized that these provisions are rooted in South Africa’s socio-economic context and its apartheid legacy, which deliberately excluded the majority of the population from meaningful participation in the economy.
Although the 2019 amendments to the Competition Act explicitly reinforced the obligation to assess both competition and public interest effects of a merger, Makunga noted that such considerations have been a consistent feature of South African merger control since 1999.
From 2019 to 2025, public interest conditions imposed by the Commission resulted in significant economic transformation outcomes: an estimated R16 billion in HDP (historically disadvantaged persons) transactions, over R60 billion in worker ownership deals (ESOPs), and more than R130 billion in commitments supporting small and black-owned firms through procurement, supplier development, capital expenditure, and skills development.
To further improve predictability, the Commission published Public Interest Guidelines in March 2024 — developed with input from legal practitioners and business representatives. These guidelines provide insight into the Commission’s likely approach to public interest assessments and are part of a broader effort to ensure transparency. Similar practice notes have also been issued in recent months, covering indivisible transactions (September 2024), internal restructurings (April 2025), and risk mitigation transactions (2017).
Makunga concluded by reaffirming that merger regulation plays a key role in creating fair, inclusive, and competitive markets:
"The Commission’s merger regulation mandate seeks to level the playing field so that all firms, big or small, can compete fairly and expand or grow in their respective industries."
Source: Cape Times
