News & Articles

Alignment or misalignment? The BEE Commission, the Competition Commission and M&A

Alignment or misalignment? The BEE Commission, the Competition Commission and M&A

As much as M&A transactions are a part of our economic landscape and vital to economic growth and investment in South Africa, there remains a vital balance been economic growth and addressing historical disparities and increasing the participation of previously disadvantaged in the economy. To regulate and align these objectives, the Competition Commission and BEE Commission play pivotal roles. But, do their functions complement each other? In this article, we investigate how their respective functions and mandates align (or not) in respect of the South African M&A environment.

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Private vs Listed Company M&A Transactions

Private vs Listed Company M&A Transactions

Mergers and Acquisitions (“M&A”) are a pivotal part of South Africa’s growing and developing corporate landscape. There are however some unique differences when dealing with private or listed company M&As. In this article, we look at some of the more distinctive traits and considerations associated with M&A transactions in these two sectors in South Africa.

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Relationship triangle between M&A, BEE and Foreign Entities

Relationship triangle between M&A, BEE and Foreign Entities

The Merger & Acquisition (M&A) landscape in South Africa does not only consider competition within the South African market but also considers the impact M&A transactions may have on historically disadvantaged people as regulated by the Broad-Based Black Economic Empowerment Act 53 of 2003 (“BEE Act”). In this article, we look at the relationship triangle between M&A transactions, the requirements of the BEE Act, and its impact on foreign entities wishing to invest in South Africa through an M&A.

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Merger & Acquisitions: Why they fail?

Merger & Acquisitions: Why they fail?

Mergers and Acquisitions (M&A) are intricate commercial transactions that hold huge potential for economic growth, investment, job creation and increased market competitiveness. Yet, their complexity can also be their undoing. In this article, we take a look at some of the main pitfalls and issues in South Africa that result in unsuccessful M&As or M&As that don’t live up to their expectations.

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What to expect from the new draft Employment Equity Act Regulations

What to expect from the new draft Employment Equity Act Regulations

The Employment Equity Amendment Act 4 of 2022 (“Amendment Act”) was introduced in April 2023 but the commencement date has yet to be promulgated. To address the sectoral numerical targets provided for in the Amendment Act, new draft regulations were issued for comment on 1 February 2024 (“Draft Regulations”). In this article we take a look at the draft regulations and what they mean for employers.

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To click or to ink? Are electronically signed sale of property agreements valid in SA?

To click or to ink? Are electronically signed sale of property agreements valid in SA?

In the current digital era, the use of electronic signatures has substantially increased, reshaping traditional practices with their convenience and efficiency. From large corporations to small businesses, organizations are embracing electronic signatures to streamline processes and adapt to a digital business landscape. This article explores the validity of electronic signatures and specifically how it affects the validity of a sale of property agreement.

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Human Rights: Upholding the right to education

Human Rights: Upholding the right to education

The right to education is outlined in section 29 of the Constitution of the Republic of South Africa, 1996 (hereinafter “the Constitution”). This section guarantees that everyone has the right to basic education and the right to further education, which the state, through reasonable measures, must make progressively available and accessible. In South Africa the right to basic education can be described as a fundamental socio-economic right, that is, an entitlement to conditions and resources necessary for the material well-being of people.

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AI Rights vs Human Rights

AI Rights vs Human Rights

The age of artificial intelligence (AI) is one of the world’s ground-breaking developments, and powerful enough to transform and advance the entire world. However, the excitement of AI being an incredible tool must not overshadow the actual humans and their rights that must still be protected in the era of AI.

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Navigating the Herd: Avoid negative tax implications of livestock in your estate

Navigating the Herd: Avoid negative tax implications of livestock in your estate

Many farmers still conduct their farming operations with livestock owned in their personal capacities. Although such ownership may have certain advantages, it can pose significant complications for a farmer in the event of his passing. It is therefore crucial for farmers to do a comprehensive tax and estate planning assessment to look into the potentially complex issues which must be addressed to ensure liquidity in the deceased estate and to avoid unnecessary financial burdens on the estate or loved ones after death.

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Peanut butter product recall – A smooth analysis of a crunchy matter

Peanut butter product recall – A smooth analysis of a crunchy matter

Picture the confusion of peanut butter enthusiasts as they strolled into their local grocery store only to discover that their beloved peanut butter brand had been pulled from the shelves. What may just be a disgruntled customer at that moment is the evidence of a bigger matter in terms of the Consumer Protection Act 68 of 2008 (“CPA”). Well, let’s not focus on the “crunchy” and “sticky” issue of the recent recall of Clover’s Go Nuts Peanut Butter, but rather on the role that the CPA and the National Consumer Commission (“Commission”) plays in the recall of products in South Africa now and then to protect customers in South Africa.

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SA’s New Land Court Act – paving the way for settling land disputes

SA’s New Land Court Act – paving the way for settling land disputes

In a quest to remedy historical land injustices and streamline the resolution of land and land rights issues in our country, South Africa has introduced a pioneering piece of legislation namely the new Land Court Act. This Act represents a significant milestone in the ongoing efforts to foster equitable land distribution and provide an effective mechanism for resolving land disputes. The Land Court established by virtue of this transformative legislation will play a central role, as will be outlined in this article.

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Construction Contracts: Is it a “one-size-fits-all” decision?

Construction Contracts: Is it a “one-size-fits-all” decision?

Clients often have very different perceptions about the necessity and type of contract they may need for their construction contract. Surprisingly, even with large development projects, there is often the view that if you have the quote and designs, why then bother with a contract? In this article, we provide some guidance on the various types of construction contracts that can be considered for a building project, large or small.

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How far does employer liability for the actions of its employee extend?

How far does employer liability for the actions of its employee extend?

It is relatively well-known that employers can be held liable for the conduct of their employees. What is generally less well-understood is the scope of this liability. For example, can an employer be liable for the conduct of an employee whilst on sick leave? In this article, we take a look at an employer’s vicarious liability and how far this liability may extend.

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TRP approval: Essential for SA company transactions

TRP approval: Essential for SA company transactions

The Takeover Regulation Panel (“TRP”) is a key South African regulatory body responsible for regulating certain types of transactions undertaken by companies in South Africa. In this article, we take a look at a few transactions that specifically need to be approved by the TRP and, in particular, the requirements to give notice of such transactions.

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The regulatory bodies that govern Mergers and Acquisitions

The regulatory bodies that govern Mergers and Acquisitions

The Competition Commission

The Competition Commission is a regulatory body established in accordance with the Competition Act, 89 of 1998 (“Competition Act”), with the power to investigate, monitor, and assess anticompetitive business practices, collusion, and mergers to foster healthy competition within the South African economy.

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POPIA compliance: Safeguarding Data Privacy in South Africa

POPIA compliance: Safeguarding Data Privacy in South Africa

Every year, January 28th marks World Data Privacy Day, celebrated globally to emphasise the critical need for privacy, particularly in recent times characterised by a continuously shrinking, interconnected, and intelligent digital global community, where there are almost constant flows of data and personal information in all aspects of life.

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The role of ‘control’ in M&A transactions

The role of ‘control’ in M&A transactions

In an earlier article, we examined the requirements for notifying the Competition Commission about your merger. One of the aspects touched on was the requirement of ‘control’ as an indicator of whether a transaction is reportable or not. In this article, we will delve deeper and examine the ‘control’ element as contemplated in the Competition Act 89 of 1998 (“Act”).

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An introduction to mergers and acquisitions in South Africa

An introduction to mergers and acquisitions in South Africa

Mergers and Acquisitions or ‘M&As’ have become integral components of South Africa’s corporate landscape and play a crucial role in economic growth and development. In this article, we explore the legal framework and key considerations surrounding M&A transactions in South Africa by looking at the regulatory environment, competition law, due diligence, tax, and transaction structuring that accompanies M&A transactions.

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