Method of Calculation on Merger Thresholds Tweaked

Department of Economic Development

The method of calculation used to determine merger thresholds has been amended.

The economic development department published the amendments in Government Gazette 41245 in terms of the Competition Act.

The amendments stipulate that the assets and the turnover of a firm must now be determined in terms of the International Financial Reporting Standards.

The previous regulations referred to the Generally Accepted Accounting Principles.

An amendment is also introduced to clause 9 on form of financial statements.

The financial statements must be for the end of the immediately previous financial year prior to the merger.

Sabinet Cape Town Office