Browsing by Author "Mbasane, Sindisiwe"

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    An analysis of Black Economic Empowerment in merger regulation and Its impact on SMEs under the South African Competition Act of 1998
    (University of Fort Hare, 2024-11-20) Mbasane, Sindisiwe ; Van Coller, Arthur; Odendaal, Anel
    The assessment of mergers is, firstly, whether they will lessen or prevent competition; secondly, whether there are any technological or pro-competitive gains justifying an otherwise anti-competitive merger; and lastly, whether they are justified on the grounds of public interests. Section 12A(3) of the Competition Act states that when determining whether a merger can or cannot be justified on public interest grounds, the Competition Commission or the Competition Tribunal must consider several factors. These include the ability of small businesses or firms controlled or owned by historically disadvantaged persons to enter, compete, and expand in the market, and the ability of national industries to compete in international markets as well as the promotion of a greater spread of ownership to increase the levels of ownership by historically disadvantaged persons and workers in firms in the market. This gives rise to Black economic empowerment (BEE) as public interests grounds for consideration when the competition authorities evaluate a merger. It should be noted that a pro-competitive merger can be blocked based on the grounds of public interest of BEE and vice versa. The consideration of BEE has seen the promotion of SMEs owned mainly by the black community. Therefore, this study seeks to determine whether the intervention of competition laws and policies has effectively achieved the policy goals of promoting a greater spread of ownership in the economy to increase the ownership stakes of historically disadvantaged persons. The study examines the extent to which BEE has been explicitly realised in the context of merger acquisition and regulation in South Africa to foster the growth and performance of SMEs. The study will use the desktop methodology where primary and secondary sources of data will be used to collect information.