The Namibian Competition Commission (NaCC) has warned that no individual or group may proceed with a merger without approval from the Commission.
Implementing a merger without approval violates the merger provisions of the Competition Act.
The NaCC has emphasised that such actions will have consequences for those involved.
A merger occurs when one or more firms gain control, directly or indirectly, over part or all of another firm's business.
This can happen through the purchase or lease of shares or interest assets or through amalgamation or other combinations with the need for a change of control.
During a seminar, the commission stressed that no merger can be implemented without its approval.
The involved firms must notify the Commission in the prescribed manner when they propose a merger.
As per the threshold requirements, a merger is only notifiable if the combined assets or turnover exceed N$30 million and the assets or turnover of the transferred firm exceed N$15 million.
If these thresholds are not met, the merger does not need to be notified to the Commission.
"The target, in terms of requirements, is N$15 million, and the combined total should be N$30 million. It is possible for the target to have assets or turnover exceeding N$40 million; such an outcome would indicate that the target has already met the N$15 million requirement and has already reached the required N$30 million without even acquiring the undertaking. In cases where the undertaking is not active in Namibia but the target is active, you are still required to notify the commission," explained the Director of Mergers and Acquisitions at NaCC, Johannes Ashipala.
Ashipala mentioned that some transactions, referred to as complicated cases, are currently being worked on and may take longer than the initial 30 days to process and determine.
He further stressed that the Commission's main concern is assessing the potential effects of these transactions on the market.
The Commission, through its Mergers and Acquisitions Division, investigates and analyses proposed mergers.
It requires businesses to notify the Commission of such intentions, which are prohibited until approval is granted.