a tripartite report - Unctad
a tripartite report - Unctad
a tripartite report - Unctad
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16 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE<br />
considered in the United Republic of Tanzania entail<br />
only a competition type assessment.<br />
Also in Zambia and in Zimbabwe all mergers<br />
<br />
thresholds for Zambia and Zimbabwe have a very<br />
similar structure. In Zambia the threshold is de-<br />
ever<br />
is higher, in Zambia of the merging parties,<br />
<br />
bined<br />
annual turnover or assets in Zimbabwe of<br />
<br />
A combined turnover threshold like the one<br />
adopted in Zambia and in Zimbabwe is disad-<br />
<br />
notify also the smallest transactions and even ac-<br />
<br />
of such transactions on the domestic economy is<br />
<br />
Each jurisdiction should limit the number of merg-<br />
<br />
an increase in market power and that are likely to<br />
create anticompetitive effects on their markets. This<br />
suggests that what matters are threshold triggers<br />
tion<br />
concerned of the relevant business entities to<br />
<br />
be able to encompass both mergers and acquisi-<br />
<br />
two combined triggers: (a) combined turnover or<br />
assets of all parties to the concentration exceed-<br />
<br />
<br />
minimum turnover or assets in the jurisdiction. This<br />
is the direction all three jurisdictions should move.<br />
Zambia and Zimbabwe differ with respect to the<br />
<br />
<br />
90 days, extendable by other 30. However simpler<br />
transactions could be cleared in a much quicker<br />
way. If the law is not changed along the lines suggested<br />
by the country <strong>report</strong> (a two phases procedure),<br />
the Authority may decide to clear simpler<br />
transactions quicker at its own initiative. Even if<br />
view,<br />
nothing impedes the Authority to voluntarily<br />
choose a shorter one for some transactions.<br />
In Zimbabwe the law does not provide a term<br />
for the investigation to end, once the merger is<br />
<br />
as practicable” may cause long delays for a decision.<br />
Although changes in the law would clearly<br />
be preferable to eliminate this challenge, the Authority<br />
should announce unilaterally stricter terms<br />
that it would constrain itself to follow. Or prepare<br />
operation guidelines as a secondary legislation to<br />
give them a force of law.<br />
As for the standard for merger control, also Zambia<br />
and Zimbabwe adopt a public interest test. In Zimbabwe,<br />
once the Authority concludes that a merger<br />
substantially lessens competition, it then determines<br />
whether the merger is likely to result in any<br />
<br />
gain which would be greater than and offset the<br />
effects of any prevention or lessening of competition<br />
that may result or likely result from the merger,<br />
and would not likely be obtained if the merger is<br />
prevented. The pro-competitive gains include<br />
economies of scale or other reason likely to result<br />
<br />
trade or industry, necessary for the production,<br />
supply or distribution of any commodity or service<br />
in Zimbabwe. What this implies is that in Zimbabwe<br />
like in the United Republic of Tanzania the public<br />
<br />
clearly within the best practice in merger control.<br />
<br />
wider than that provided in the United Republic<br />
of Tanzania and Zimbabwe. In Zambia the law,<br />
<br />
petitive<br />
merger to be authorized for a number of<br />
very general reasons, leading to a very long list<br />
of exceptions. In particular, the Authority “may, in<br />
considering a proposed merger, take into account<br />
any factor which bears upon the public interest in<br />
the proposed merger, including<br />
(a) the extent to which the proposed merger is<br />
<br />
would outweigh any detriment attributable to<br />
a substantial lessening of competition;<br />
(b) the extent to which the proposed merger<br />
would, or is likely to, promote technical<br />
or economic progress and the transfer to<br />
skills, or otherwise improve the production<br />
or distribution of goods or the provision of<br />
services in Zambia;