Non-competition Goals and Their Impact on South African Merger Control: An Empirical Analysis

Abstract

Merger control regimes in various jurisdictions-especially in Africa-feature non-competition objectives in addition to conventional goals, such as the maintenance or promotion of competition. Such 'public interest' objectives-including the promotion of employment, small business and particular industries-create special challenges for competition authorities. Furthermore, the broad definition of, and complexity that are associated with, non-competition objectives may increase uncertainty about merger control. We study the systematic impact of public interest concerns on South African merger decisions, in terms of the duration of adjudication and consistency over time. Our results suggest that the adjudication of mergers that feature public interest concerns take longer. More important, these cases have a higher probability of having conditions that are imposed for approval, and this has been increasing steadily over the past decade. This indicates more aggressive merger control and raises policy questions about the consistency-and hence predictability-of South African merger decisions.

’n Oorsigtelike ondersoek na die oorweging en toepassing van openbare belang tydens Suid-Afrikaanse samesmeltings en oornames

“…Die fonds is gebruik om plaaslike verskaffers en klein besighede te ondersteun, asook om opleiding te verskaf aan Suid-Afrikaanse verskaffers oor hoe om besigheid te doen met die saamgesmelte entiteit en Walmart.In die afgelope drie jaar het veral twee spesifieke S&O's in Suid-Afrika die openbare oog gevang. In Maart 2020 het PepsiCo 'n 100%-aandeel in Pioneer Foods gekoop deur middel van sy Simba-filiaal in Suid-Afrika(Changole en Boshoff 2022). Net soos met die Walmart/ Massmart-samesmelting was 'n VOF 'n prominente voorwaarde tot die samesmelting, met 'n VOF ter waarde van 'n aanvanklike belegging van R600 miljoen, wat hoofsaaklik gebruik sal word om die transformasie van die waardeketting te ondersteun.…”