A study of the factors that lead to the non-notification of notiafiable mergers in Zambia
Date
2019
Authors
Ilukena, Maikisa
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
It has been recognized that in the absence of merger control regulation, society would see harm
to business as suppliers become uncompetitive, inefficient, costly and not responsive to their
competitive environment as well as harm consumers. The purpose of the study was to investigate
the factors that lead to the non-notification of notifiable mergers. The research design used was
that of a cross sectional survey. The researcher adopted both the qualitative (interview guide) and
quantitative (closed ended questionnaire) research approaches. Quantitative data was analyzed
using Statistical Package for the Social Sciences (SPSS) version 16.0 whereas qualitative data
was analysed using Content Analysis. The sampling technique was purposive sampling, due to
the fact that many companies fall below the notification threshold and the fact that only the
Competition and Consumer Protection Commission is tasked by law to review and authorize
mergers. The sample size for this study, in particular the administration of questionnaires was 60
whereas the sample size for the interviews was 14. The samples comprised of the Competition
and Consumer Protection Commission, Private Companies, Law Firms and Accounting firms.
The findings of the research show that the myriad of factors that lead to the non-notification of
notifiable mergers in Zambia are high notification fees, longer merger review process,
negligence of the law, ignorance of the law, notification process not being digital and lack of
adequate sensitizations on mergers. The results show that the merger review process to a larger
extent leads to the non-notification of notifiable mergers in Zambia particularly its duration. In
conclusion, the research concludes legal, financial and informational factors have lead to the
non-notification of notifiable mergers in Zambia. The findings of the research fills in the gaps in
knowledge of the factors that lead to the non-notification of notifiable mergers in Zambia and
provides a basis upon which to make recommendations. The research recommends that the
Ministry of Commerce, Trade and Industry should come up with a Statutory Instrument (SI) that
viii
aims at reducing the merger notification fees. A set of recommendations to the Competition and
Consumer Protection Commission include the review the Competition and Consumer Protection
Act ( the “Act”)with the aim of reducing the number of days it takes to review a merger;
stiffening the penalties for implementing a notifiable merger without authority; increase
sensitizations on mergers; make the merger notification process digital; decentralise the mergers
department to other provinces and lastly work hand in hand with other regulators such so as to
track notifiable mergers that have not been notified.
Description
Thesis
Keywords
Merger control regulation--Zambia