FCCPC Warns Firms Against Violation of M&A Processes
The Federal Competition and Consumer Protection Commission (FCCPC) has warned firms, transaction parties and other stakeholders against non-compliance with statutory obligations relating to mergers and acquisitions.
FCCPC gave the warning in a notice signed by Eme David-Ojugo, its Head, Mergers and Acquisitions Department, and posted on the commission’s official X.
The commission said that under the FCCP Act, it had the power to review, approve, subject to conditions, or prohibit mergers and qualify business combinations once they were notified.
The commission explained that the framework was designed to preserve fair competition, prevent harmful market concentration, and protect public interest.
FCCPC noted that any transaction meeting the thresholds set out in the applicable ‘Notice of Threshold for Merger Notification’, issued pursuant to Section 93(4) of the FCCPA, must be notified to the commission for prior review and approval before implementation.
It said that the notification process would enable the commission assess whether a proposed transaction was likely to substantially prevent or lessen competition in any relevant market in Nigeria, or raise public interest concerns.
FCCPC added that the process would also support the commission’s responsibility to monitor market developments and maintain an informed understanding of competitive dynamics across sectors.
The commission said that the requirement applied to a broad range of transactions, including share acquisitions, asset acquisitions, joint ventures, and other arrangements that fell within the legal definition of a merger under the Act and relevant regulations.
It emphasised that failure to notify the commission contravened the FCCPA and may attract administrative penalties or other enforcement actions in accordance with the law.
The commission encouraged parties and their advisers to engage with the commission at an early stage where a contemplated transaction may be notifiable.
It noted that early engagement, including pre-notification consultations where necessary, could provide regulatory clarity, support efficient review timelines, and assist parties in meeting applicable compliance requirements.
The commission advised firms and transaction parties to take all necessary steps to ensure compliance before implementing any transaction that may fall within its merger review jurisdiction.
It added that stakeholders seeking further enquiries or clarification may contact the commission or visit the FCCPC website.
The commission, however, reaffirmed its commitment to promoting fair competition, protecting consumers, and supporting a transparent, efficient and competitive business environment in the country. DMO to Reopen N700bn Nigerian Bonds for Subscriptions
