The approval of the holders of relevant securities or

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the approval of the holders of relevant securities, or in terms of a pre-existing obligation or agreement entered into before the time contemplated in this subsection. (2) If a regulated company believes that it is subject to a pre-existing obligation contemplated in subsection (1), it may apply to the Panel for consent to proceed. Depending on the category the required info changes
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Category 2: transaction where between 5% and 25% of shareholdings will be acquired Category 3: reverse M&A’s unbundling transactions - the timing of announcements via SENS is critical - since business combinations influence share values – company must issue a precautionary notice if the confidentiality of the transaction has been breached - if the mandatory offer is triggered (like at 35% share holding level) must make an intention announcement - if fail to comply – fines and levies - Intentional Announcement must be made at the earliest date possible after the board meetings to discuss the business combination with top management. The Competition Act (No. 89 of 1998) - Various prohibitions to try and reduce anti-competitive behaviour, price-fixing and to curtail dominant companies from abusing their large market share and influencing prices and competition. - Severe penalties for if don’t comply with requirements - Monopolies, oligopolies and cartels - Example – Tiger Brands, Foodcorp and Pioneer Foods formed a cartel and fixed the price of bread - The Act also investigates: Insufficient notification of deals to shareholders – they need time to gather the information, seek advice and make an education decision Irregularities in terms of shareholder approval The competition authorities seek to protect the interest of the general public , they have imposed severe fines in the past for non-compliances with legislation. - There are three institutions that form the cornerstone of the act & substantially increase the power of SA Competition Authorities: 1.) Competition Commission a statutory body that is constituted by the SA Government - empowered to investigate, control & evaluate prohibited business practices, the abuse of dominant market share, and mergers – achieve equity & efficiency - can reject small & medium size M&As 6 | P a g e Price Fixing for FIFA World Cup The revelation of cartels in SA’s construction sector by the competition commission has captured the imagination of many stakeholders. There has been applause that culprits have been ―caught out‖, shock at the extent of the conduct, and also indignation at the size of the penalties, which are deemed too small by some. Given the reach and extent of the cartel’s conduct, few South Africans have been left unaffected. Thirteen other African nations were also affected through 40 projects – a worrying reflection of the South African private sector’s commitment to development on the rest of the continent.
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  • Fall '19
  • Competition Commission

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