Research On Merger Legal System Of Common Market For Eastern And Southern

Regional integration in Africa is and continues to be a slow moving process. It is however currently receiving the necessary impetus resulting from the harsh global economic realities. Regionalization and the creation of the necessary environment for economic growth and development in Africa is now imperative. African economies need to move from natural resource-based economies to industrial and manufacturing economies in order to achieve this objective and consequently become globally competitive. One such regional integration framework is the Common Market for Eastern and Southern Africa(COMESA). COMESA’s integrative objective is to be achieved through creating an environment that promotes domestic, cross-border and foreign investment, adoption of common policies and programs and the adoption of common positions with regards to international agenda.COMESA is currently Africa’s newest and largest regional trade organizations; trade within the region is also the rapid growth and development. Trade within the common market between enterprises can promote economic development, but also have a series of problems. To solve these problems, COMESA issued a set of 《COMESA Competition Regulations》to regulate competition within the common market. At the same time, also created competition and the implementation of relevant laws and regulations Competition Committee is responsible for the management within the common market. Merger legal system is the competition rules which constitute an important part.In order to specific procedures and the implementation of mergers and acquisitions,COMESA formulate a 《 COMESA Merger Assessment Guidelines 》. This guide is COMESA safeguard weapons mergers and acquisitions frequently used order, it is for ensuring rapid and orderly development of the economy within the common market, and promoting effective competition within the common market enterprises and plays a crucial role.COMESA merger legal system has mainly source of 《 COMESA Competition Regulations》and 《COMESA Merger Assessment Guidelines》.The merger legal system include related merger procedures and review procedures, The three criteria to be considered when COMESA Competition Commission review of mergers:(1) Substantial prevention or lessening of competition standard;(2) “Theories of harm and efficiencies”standard;(3) "counter-factual scenario" standard.Establishment of these systems to a largeextent on the regulation of mergers within enterprises in the COMESA, but in practice,there are many deficiencies. For example, first, the merger threshold is too low and the cost is too high to declare acquisitions; secondly, COMESA merger legal system doesn’t have any specify penalties for the enterprise in violation of reporting procedures and review procedures; Furthermore, COMESA merger legal system in the absence of the legal system of pre-notification procedures that leading to spend too much influence some major companies reporting time.