LML4802
Assignment 1 Semester 2 2025
Unique Number:
Due Date: August 2025
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.1 Since Starlink intends to acquire a
controlling shareholding in Vodacom, this constitutes a merger as envisaged by the Act.
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By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 2 2025
Unique Number:
Due Date: August 2025
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.1 Since Starlink intends to acquire a
controlling shareholding in Vodacom, this constitutes a merger as envisaged by the Act.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
