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Legal Update – 6 July 2017

The Fair Competition (Threshold for Notification of a Merger) (Amendment) Order 2017

  • Fair Competition Commission increases merger threshold
  • New subsidiary legislation for merger notifications in Tanzania gazetted
  • Threshold for notification of merger increased from TZS 800M to 3.5B

The Fair Competition Commission (FCC) has issued the Fair Competition (Threshold for Notification of a Merger (Amendment) Order 2017) through Government Gazette No. 222 published on 2nd June 2017, whereby the FCC has amended the Fair Competition (Threshold for the Notification of a Merger) Order, 2006.

In a welcome move, the notification of a merger through this latest order has now been increased from TZS 800,000,000 (about USD 357,000) to TZS 3,600,000,000 (about USD 1,600,000).

The calculation of the threshold is calculated based on the combined market value of assets or turnover of the merging firms.

Under the Fair Competition Act, a merger is defined as an acquisition of shares, a business or other assets, whether inside or outside Tanzania, resulting in the change of control of a business, part of a business or an asset of a business in Tanzania.