South Africa raises merger control thresholds to speed up foreign investment

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Regulation and Competition

The South African government has approved raising the financial thresholds for mandatory notification of mergers and acquisitions. The measure aims to reduce the administrative burden and attract foreign capital, particularly benefiting smaller M&A transactions and Spanish SMEs with interests in the South African market.

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A reform to attract capital and reduce bureaucracy

The Government of Sudáfrica has modified its competition regulations by raising the financial thresholds that require companies to notify their merger and acquisition (M&A) transactions to the Competition Commission of the country. This decision, effective immediately in May 2026, is designed to revitalize the market, reduce the bureaucratic burden for smaller transactions, and focus regulatory resources on operations with high strategic impact.

For Spanish companies, especially small and medium-sized enterprises (SMEs), this regulatory update represents a window of opportunity This is significant. By raising the thresholds for revenue and combined assets, many transactions that previously required a costly and time-consuming approval process can now be completed more quickly. This lowers the barriers to entry for direct investment in one of the most dynamic markets on the African continent.

Direct impact on Spanish investment

The regulatory change simplifies the scenario for Spanish companies planning to expand in Sudáfrica through the acquisition of local companies. Until now, relatively low thresholds could discourage SMEs from undertaking transactions due to the legal costs and waiting periods associated with merger control. With the new framework, an increase in transactions in this segment is expected. mid-market.

Experts in international commercial law consulted by Foreign Company They point out that «This measure aligns Sudáfrica with practices more common in other emerging economies that actively seek to attract foreign investment. For a Spanish SME looking to acquire a local distributor or technology partner, the difference between having to report the transaction or not can mean savings of tens of thousands of euros and several months of administrative time.«.

New merger notification thresholds in Sudáfrica (2026)

Concept	Anterior Threshold (ATH)	New Threshold (ZAR)	Key Impact
Billing and/or combined assets	600 million Tsars	800 million Tsars	Transactions below this new limit are exempt from mandatory notification.
Billing and/or assets of the acquired company	100 million Tsars	150 million Tsars	It facilitates the acquisition of smaller local companies by foreign investors.

Note: The values ​​in the table are illustrative to contextualize the magnitude of the regulatory change. Exact figures should be consulted in the official Government publication. Sudáfrica.

Key points and frequently asked questions about the new merger regulations in Sudáfrica

How does this measure affect my SME if I want to buy a company in Sudáfrica?

If your company is planning an acquisition and the combined revenue or assets of both companies, as well as those of the acquired company, fall below the new thresholds, the transaction will no longer require prior authorization from the Competition CommissionThis translates into a faster, cheaper process with less legal uncertainty, facilitating market entry.

Does this change in competition law have any impact on my exports to Sudáfrica?

Not directly. The measure affects investment operations and corporate structure (mergers, acquisitions), not the trade of goods and services. Export processes, customs, tariffs, and product regulations are not altered by this change. However, it may facilitate the purchase of a local distributor, which would indirectly strengthen an exporter's commercial and logistical strategy.

Which sectors in Sudáfrica Could they be more attractive to Spanish investment after this change?

Sectors where Spanish companies have a strong competitive advantage and where opportunities exist with medium-sized local partners are the main beneficiaries. These include: renewable energy, the agri-food industry (technology and production), the IT software and services, as well as components for the automotive and the sector touristSimplifying M&A can accelerate consolidation and technology transfer in these areas.