Competition Commission Aims To Provide Clarity On Internal Restructurings

The legal position on whether internal restructurings within South African businesses require prior approval from the competition authorities has been uncertain for some time. In a welcome development, on 24 January 2025, the Competition Commission took steps to clarify this issue by publishing draft guidelines on internal restructurings.

As a key starting point, the draft guidelines confirm that not all internal restructurings require competition approval. However, there may be "limited and narrow circumstances" where parties may be required to notify restructurings. This is a positive development for businesses engaging in internal restructurings, as it provides a clear measure to rule out notifications from the outset or determine whether restructurings may be notifiable.