- Threshold for Notification increased from TZS 800 Million to TZS 3.5 Billion.
- Basis for calculation of threshold amount widened to include turnover of the merging firms.
The Fair Competition (Threshold for Notification of a Merger) (Amendment) Order, 2017 has introduced new prescribed threshold that requires a mandatory notification to the Fair Competition Commission (FCC) upon a merger or acquisition. The newly introduced threshold is Tanzania Shillings Three Billion Five Hundred Million Only (TZS 3,500,000,000/=) (approximately US$1,563,905). The previous prescribed threshold was Tanzania Shillings Eight Hundred Million (Tshs. 800,000,000) (approximately US$357464) as per the Fair Competition (Threshold for Notification of a Merger) Order, 2006.
Furthermore, it is important to note that the basis for calculation of the threshold has been widened to include either the combined market value of the assets or the turnover of the merging firms. Prior to the amendments the calculation of the threshold was based on combined market value of the assets of the merging firms only.
The corporate department at Breakthrough Attorneys brings to the attention of the general public the changes made by the FCC with regards to mergers and acquisition. An alert is given the general public and interested stakeholders to take note of this legal update when referring to the article on mergers and acquisition published on the website of Breakthrough Attorneys on the 13th day of October, 2016. The article basically explains the protection of third parties during a merger or acquisition in Tanzania. It further entails the procedures to be followed upon a merger or acquisition.
The corporate department at Breakthrough Attorneys invites the general public and interested stakeholders to take note of legal updates i.e. amendment of Fair Competition Orders for ease reference.
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Breakthrough Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.