CONSUMMATING MERGERS WITHOUT AUTHORISATION

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The Competition and Fair Trading Commission (CFTC) has noted with great concern that some companies in Malawi are consummating mergers or acquisitions without seeking authorization from the CFTC as provided for under the Competition and Fair Trading Act, Cap 48:09 of the Laws of Malawi (CFTA).

The Commission wishes to remind all persons who may have entered into a merger transaction without seeking authorisation from the Commission or those intending to enter into a merger transaction that they should seek authorisation from the CFTC. This will enable the Commission undertake a thorough assessment to determine whether the merger or acquisition is likely to result in substantial lessening of competition.

The Commission would, therefore, like to warn the business community that it is illegal for anyone to consummate a merger or an acquisition that is likely to negatively affect competition in any market in Malawi without authorisation from the Commission. The Commission will investigate any merger or acquisition for possible violation of the Act if the transaction is not voluntarily notified to the Commission. Parties to such merger transactions risk prosecution and huge penalties will be imposed on all firms found to have consummated mergers in violation of CFTA provisions.

For more information, contact Ms Angella Kachipapa on 0884426905 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

 

CHARLOTTE WEZI MALONDA

EXECUTIVE DIRECTOR