Merger And Acquisition In Tanzania Law And Procedure

Notification of a Merger:

The FCC must be notified of any merger or acquisition in which there is a turnover of assets in excess of Tshs. 800,000,000 (approximately US$380,000). The notification must include basic corporate information and a merger/acquisition plan.

After notification, the FCC has 14 days to request more informa­tion and to determine whether the proposed merger or acquisition should be examined in more detail, the absence of which the transaction is deemed ap­proved. If the FCC decides to further examine the transaction, the acquisition will be prohibited for 90 days and can be extended for an addi­tional 30 days. During this period the FCC will determine whether the merger or acquisition creates or strengthens a position of dominance in the market.

Merger And Acquisition In Tanzania Law And Procedure

 A Position of Dominance:

Under the Competition Act, a merger is prohibited where it creates or strengthens “a position of dominance” in a market. The Act defines a position of dominance as where a person acting alone, can profitably and materially restrain or re­duce competition in that market for a significant period of time; and the person’s share of the relevant market exceeds 35 percent.

If the FCC determines that the merger or acquisition does create or strengthen a position of dominance in the market, it may either prohibit the merger or acquisition entirely or suggest changes so that the proposed transaction does not contravene the Competition Act.

Important Notice:

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, MAK Africa Legal its members, employees, and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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