At first glance, “merger thresholds” sounds like the kind of phrase made for lawyers, economists and people in boardrooms.
Most ordinary South Africans would not stop at the taxi rank or around the braai to talk about it. But these rules matter more than they seem. They help decide how businesses grow, who gets bought, who stays in the market, and what choices the rest of us are left with as consumers.
For these reasons, the Competition Commission carries a moral and social responsibility of ensuring that it creates a conducive economic environment within which inclusive economic growth can be achieved for workers to be protected and jobs created.
From May 1 2026, SA raised the financial thresholds that determine when mergers must be reported to the Competition Commission. In practice that means the lower notification threshold moved from R600m to R1bn, with the target firm threshold rising from R100m to R200m.
The higher threshold also increased from R6.6bn to R9.5bn, while the target firm threshold moved from R190m to R280m.
Put simply, some smaller or more routine deals will no longer need the full notification process, allowing the commission to focus its attention on the bigger mergers that could affect competition, jobs and small businesses.
This is an important amendment because regulation works best when it is focused and appreciative of market trends. If officials are stuck processing paperwork for straightforward deals that raise no real concerns it slows everyone down. Businesses face delays and costs.
Think of it like a busy clinic on a Monday morning. If nurses spend all day sorting out routine admin, people who really need urgent medical attention wait longer. Competition regulation is no different. When the system is bogged down by low-risk filings there is less time for the deals that really matter. The point of the new thresholds is to free up capacity for serious mergers to get proper scrutiny.
Take a simple example. A regional food wholesaler buys a smaller local supplier. Under the old rules that deal might have triggered a filing even if it posed little risk to competition. Under the new rules a transaction like that may move faster. But if a dominant retailer wants to buy a major rival, or a merger could affect prices, jobs or shelf space for smaller suppliers, the Competition Commission can still step in and take a close look.
That matters in SA, where competition law is about more than what we pay at the till. It is also about jobs, transformation and whether small and black-owned businesses get a fair chance to participate in the economy. In a country where many markets are still highly concentrated, the real test is whether the system stays alert to mergers that could make that worse. Raising the thresholds does not remove those protections. It is supposed to make the system more targeted.
For most people this will never feel as urgent as the price of bread, electricity or taxi fare. But it is connected to the same bigger question of whether our markets are working for everyone or only for the biggest players. These changes can help strike the right balance - less paperwork for ordinary deals, more focus on risky ones, and a system that protects the public interest while allowing the economy to move. It embodies the SA we all want.
Makunga is the spokesperson for the Competition Commission of SA
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.