Malawi merger control
Produced in partnership with Herbert Smith Freehills

The following Competition practice note produced in partnership with Herbert Smith Freehills provides comprehensive and up to date legal information covering:

  • Malawi merger control
  • 1. Have there been any recent developments regarding the Malawian merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Malawi?
  • 2. Under Malawian merger control law, is the control test the same as the EU concept of ‘decisive influence’? If not, how does it differ and what is the position in relation to 'minority shareholdings'?
  • 3. Are joint ventures caught by the national merger control provisions (including non-structural, cooperative joint ventures)?
  • 4. What are the merger control thresholds and would a purely foreign-to-foreign transaction be caught (commenting on any ‘effects’ doctrine/policy if relevant)?
  • 5. Are there any specific issues parties should be aware of when compiling and calculating the relevant turnover for applying the jurisdictional thresholds?
  • 6. Where the jurisdictional thresholds are met, is notification mandatory and must closing be suspended pending clearance?
  • 7. Is there any discretion to review transactions that fall below the notification thresholds?
  • 8. Is it possible to close the deal globally prior to local clearance?
  • 9. Is there a deadline for filing a notifiable transaction and what is the timetable thereafter for review by the Competition and Fair Trading Commission?
  • More...

Malawi merger control

A conversation with Jean Meijer, partner, and Sandhya Foster, associate at international law firm Herbert Smith Freehills South Africa LLP, on key issues on merger control in Malawi.

NOTE–to see whether notification thresholds in Malawi and throughout the world are met, see Where to Notify.

Malawi is also a member of COMESA, which operates a supra-national merger control regime.

1. Have there been any recent developments regarding the Malawian merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Malawi?

The Malawian Competition and Fair Trading Commission (the Commission) appears to consider that any merger between two or more independent enterprises, or takeover of one or more such enterprises, requires authorisation.

However, the Competition and Fair Trading Act, No 43 of 1998 (the Act) does not establish a mandatory notification regime. Rather, parties are required to self-assess whether the merger or takeover is likely to result in substantial lessening of competition in any market ('market' means 'a market in Malawi for goods or services as well as other goods or services that, as a matter of fact and commercial common sense, are substitutable for them'). Where a merger or takeover is likely to result in substantial lessening of competition, parties should seek authorisation from the Commission to effect the merger or takeover.

In the event

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