News & Articles
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.
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.
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.
Good Housekeeping: Preparing for an M&A
When a company is considering a Merger or Acquisition transaction (M&A), it is vital that the correct preparation is done for the transaction using what we call good ‘housekeeping’ practices. In this article we take a look at these housekeeping practices and why they are important in the run-up to an M&A.
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.
Can a Homeowners Association take over refuse removal from a local authority?
With many local authorities struggling to provide municipal services to residents, a key question that arose in a recent case was whether a Homeowners Association was entitled to take over the function of refuse removal from the local authority and whether the local authority was still entitled to charge for refuse removal.
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.
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.
Safeguarding your legacy for your children
For any parent, the question of how to protect and provide for their children after their passing is a burning concern that arises long before the first child is born. In this article, we explore how parents can safeguard their legacy for their children.
How liable is an owner for damage caused by animals?
One has often read about owners being held liable for a dog attack on a person, but what about an animal on the road which ends up causing an accident? Can the owner be held liable for the resulting damage?
A litigant’s right to a fair trial and a lost trial record
In a recent matter, Muravha v Minister of Police (179/2022) [2024] ZASCA 11 (30 January 2024), where we were fortunate enough to act as the local correspondent in the Supreme Court of Appeal, the Court had to decide on exactly this issue.
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.
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.
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.
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.
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.
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.
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.
Why a clean donation can have sticky consequences
A donation, made with the best of intent, may still land you in ‘hot’ water with SARS. In this article, we explain why a donation could result in donations tax being payable to SARS and when and how this could happen.
South Africa’s four-day workweek trial: the good and the bad
From March to August 2023, South Africa conducted the first African four-day workweek experiment involving several pilot companies trialling to assess the pros and cons of such a move in a South African context. Although it’s far too early to make any conclusive findings, we share a few thoughts about the trial and its implications for South Africa.
A practical guide for first-time home buyers
Purchasing your first home is a big financial and emotional step. Before you jump in, take a moment to think about 7 important aspects when purchasing your first home.
Customary marriages and antenuptial agreements: What you need to know
“I am getting married this year in terms of customary law. My fiancé and I are both professionals and wish to be married out of community of property so that we can manage our own estates. How can we proceed with this?”
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.
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.
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.
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”).
Competition Commission guidelines for small mergers
In previous articles, we have examined the different types of mergers and in particular looked at the notification requirements in respect of intermediate and large mergers. In this article, we take a closer look at the Competition Commission guidelines in respect of small mergers.
When do you notify the Competition Commission of your merger?
Not all mergers are created equal with some mergers requiring notification to the Competition Commission and others not. In this article, we elaborate on the mergers that will require notification as well as the consequences of failing to notify the Competition Commission.
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.
New CIPC changes for the filing of annual returns
CIPC has again announced changes to the CIPC system for the filing of annual returns and beneficial ownership information, which introduces mandatory obligations for companies and close corporations when filing their annual returns.