Joint Ventures and Competition Law – do JVs require merger notification?
Joint ventures (JVs) are not defined in the Competition 89 of 1998 however, general principles of competition regulation are applied in determining whether the formation or expansion of a JV constitutes a notifiable transaction. It should be noted that even if the JV does not, in the parties’ assessment or the assessment of the Commission, the parties conduct may still be subject to the Competition Act and must ensure that they do not fall foul of its provisions, for example, by engaging in prohibited practices (sections 4, 5, 8 and 9).
Mergers and Acquisitions: When is a merger notifiable, what are the consequences of failing to notify the Competition Authorities and what must I do?
In order to trigger a notifiable transaction, the transaction must be considered a merger in terms of the Competition Act 89 of 1998 (“the Act”). The second requirement is whether the transaction meets the financial thresholds.