South Africa introduces a screening mechanism of foreign investment

The Competition Amendment Act, published on 14 February 2019, significantly amended the competition law regime in South Africa. Additionally, it introduced the screening mechanism of foreign investments in this country. The new law requires the establishment of a special committee responsible for assessing, whether a merger involving a foreign acquiring firm may have an adverse effect on the national security interests of the Republic. Its opinion is then transmitted to the Minister of Trade and Industry, who within 30 days publishes a notice in the Gazette of the decision to permit, permit with conditions or prohibit the implementation of a merger.

• Type:

  • Entry and establishment (Ownership and control, Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • Government Gazette, Act No. 18 of 2018: Competition Amendment Act, 2018, https://www.gov.za/sites/default/files/gcis_document/201902/competitionamendment-act18of2018.pdf, 14 Feb 2019
  • Baker McKenzie, Widespread Amendments to South Africa’s Competition Law Regime, https://www.bakermckenzie.com/en/insight/publications/2019/03/widespread-amendments-to-south-africa, 04 Mar 2019