Mergers vs retrenchment – How the law is geared towards saving jobs

Mergers vs retrenchment – How the law is geared towards saving jobs

Podcast

Mergers vs retrenchment – How the law is geared towards saving jobs

Podcast

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Lara explains that when analysing transactions that have been notified to it, the Competition Commission focuses on two primary questions:

• how the transaction will affect competition in the market (for instance whether the merged entity will raise prices, lower quality, reduce output, or excluding competitors); and
• what the impact of the transaction on the public interest is.

This includes factors like the effect on employment and ownership by historically disadvantaged people (HDPs). The Commission examines whether a transaction might enhance or reduce HDP or worker ownership, as well as how it might affect the ability of small and medium enterprises, especially those owned by HDPs, to participate in the market. The Commission also actively investigates the employment implications of a proposed transaction and consults with trade unions and employees. 

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