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LML4802 assignment 1 Semester 2 2025

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LML4802
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Assignment 1 SEMESTER 2 2025
UNIQUE CODE:
Detailed Solutions, References & Explanations




DUE DATE: August 2025

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, 0688120934
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The Competition Act 89 of 1998 (“the Act”) regulates mergers in South Africa to ensure
that concentration of economic power does not undermine competition or harm public
interest. In this case, Starlink, a US-based company owned by SpaceX, seeks to
acquire 70% of Vodacom Ltd, a leading South African telecommunications operator.
This transaction raises important issues of merger classification, competitive
assessment, and public interest considerations in line with sections 11 and 12A of the
Act.

A merger is defined in section 12 of the Act as occurring when one or more firms
acquire direct or indirect control over the whole or part of the business of another firm. 1
The Competition Appeal Court in Distillers Corporation (SA) Ltd v Bulmer (SA) (Pty) Ltd
confirmed that this definition is deliberately wide and includes acquisitions of shares or
assets as well as combinations of firms into a new entity. 2 Since Starlink intends to
acquire a controlling shareholding in Vodacom, this constitutes a merger as envisaged
by the Act.




1
Competition Act 89 of 1998, s 12A(2).
2
Distillers Corporation (SA) Ltd v Bulmer (SA) (Pty) Ltd 2002 (2) SA 346 (CAC). Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is”
without any representations or warranties, express or implied. The author assumes no liability as
a result of reliance and use of the contents of this document. This document is to be used for
comparison, research and reference purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or by any means.

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