Competition Commission outlines approach to internal restructures in draft guidelines: When does an internal restructure need merger approval

Competition Commission outlines approach to internal restructures in draft guidelines: When does an internal restructure need merger approval

Podcast

Competition Commission outlines approach to internal restructures in draft guidelines: When does an internal restructure need merger approval

Podcast

00:00 00:00

Download MP3

Ntobeko explains that, typically, internal transactions don’t alter market dynamics and are therefore not considered to be within the Commission’s purview.

However, Ntobeko says that the new guidelines suggest that certain transaction which may constitute internal restructurers may be subject to assessment by the Commission if they affect the control rights of minority shareholders.

Ntobeko adds that while the draft guidelines somewhat align with existing practices, they introduce notable changes. For instance, they suggest that if a minority shareholder’s control rights are affected in an internal transaction—even without a change in the company’s ultimate control, the transaction becomes notifiable. This has important implications for companies, particularly private equity firms and businesses involved in balance sheet investments seeking to alter their shareholding in future.

Click here to listen to the 702 interview and here You FM interview