Effective October 1, 2017, the threshold values for the classification of intermediate mergers increased. The thresholds for large mergers remain unchanged. Intermediate mergers are subject to a less burdensome review process than large mergers (review periods are shorter, etc.). The lower threshold (calculated with reference to the total asset value or sales of the target, whichever is higher,) has increased from ZAR80 million (approximately €5.1 million/US$6 million) to ZAR100 million (approximately €6.3 million/US$7.5 million). The higher threshold (calculated with reference to the combined asset value or turnover, whichever is higher, of the acquirer and the target), has increased from ZAR560 million (approximately €35.5 million/US$42 million) to ZAR600 million (approximately €38 million/US$45.1 million). The new thresholds for intermediate mergers are as follows:

  • Combined sales in South Africa exceeding ZAR600 million (approximately €38 million/US$45.1 million), but below ZAR6.6 billion (approximately €418.5 million/US$496.4 million); or
  • Combined assets in South Africa exceeding ZAR600 million, but below ZAR6.6 billion; or
  • Sales of acquiring undertaking in South Africa, plus assets of target exceeding ZAR600 million, but below ZAR6.6 billion; or
  • Assets of acquiring undertaking in South Africa, plus sales of target exceeding ZAR600 million, but below ZAR6.6 billion;

And either of the following:

  • Sales of target exceeding ZAR100 million (approximately €6.3 million/US$7.5 million); or
  • Asset value of target exceeding ZAR100 million.

The thresholds for large mergers remain unchanged.