THE FAIR COMPETITION COMMISSION (FCC) INTRODUCE A NEW THRESHOLD FOR NOTIFICATION OF A MERGER AND ACQUISITION IN TANZANIA.

The Fair Competition Commission (FCC) has issued the Fair Competition (Threshold for Notification of
a Merger (Amendment) through Government Gazette No. 222 published on 2nd June 2017, whereas
the FCC has amended the Fair Competition (Threshold for the Notification of a Merger) Order, 2006.The notification of a merger through the latest order has now been increased from TZS 800,000,000
(USD 360,000) to TZS 3,600,000,000 (USD 1,600,000). Further to that the calculation of the said
threshold is to be based on the combined market value of the assets or turnover of the merging firms
while the 2006 order was based on the combined market value of the assets of the merging firms.

The Fair Competition Act, a merger is defined as an acquisition of shares, a business or other assets,
whether inside or outside Tanzania, resulting in the change of control of a business, part of a
business or an asset of a business in Tanzania. Change of control means the potential ability of the
acquiring firm to materially influence the business, policy and operations of the target firm in the
post-merger scenario.

FURTHER INFORMATION:

This editorial is intended to give you a general over view of the Law. If you would like further information on any issue raised in this column, please contact.Patrick Sanga
Partner
E: p.sanga@vemmaattorneys.co.tz
M: +255 686 999 993Bernard Nkwabi
Legal Officer
E: b.nkwabi@vemmaattorneys.co.tz
M: +255 653 374 414