LML4802
Assignment 1
Semester 2 2025
Due Year 2025
, LML4802
Assignment 1
Semester 2 2025
Due Year 2025
Merger Classification and Competitive Assessment: The Starlink–Vodacom
Merger
The Competition Act 89 of 1998 (‘the Act’) forms the cornerstone of merger regulation in
South Africa, intended to prevent concentrations of economic power from undermining
competition or harming the public interest. Starlink’s proposed acquisition of a 70%
controlling interest in Vodacom Ltd, a leading telecommunications operator, constitutes
a significant transaction requiring rigorous assessment under the Act. This analysis
examines the merger’s classification, its likely competitive effects, and the broader
public-interest considerations in terms of ss 11 and 12A of the Act.¹
Statutory Definition of a Merger
Section 12 of the Act defines a ‘merger’ broadly as the direct or indirect acquisition of
control over the whole or part of another firm’s business.² The Competition Appeal Court
in Distillers Corporation (SA) Ltd v Bulmer (SA) (Pty) Ltd confirmed this expansive
approach, holding that the definition extends to the acquisition of shares or assets and
to combinations forming a new entity.³ Starlink’s acquisition of a controlling shareholding
in Vodacom therefore squarely meets the statutory definition of a merger.
Assignment 1
Semester 2 2025
Due Year 2025
, LML4802
Assignment 1
Semester 2 2025
Due Year 2025
Merger Classification and Competitive Assessment: The Starlink–Vodacom
Merger
The Competition Act 89 of 1998 (‘the Act’) forms the cornerstone of merger regulation in
South Africa, intended to prevent concentrations of economic power from undermining
competition or harming the public interest. Starlink’s proposed acquisition of a 70%
controlling interest in Vodacom Ltd, a leading telecommunications operator, constitutes
a significant transaction requiring rigorous assessment under the Act. This analysis
examines the merger’s classification, its likely competitive effects, and the broader
public-interest considerations in terms of ss 11 and 12A of the Act.¹
Statutory Definition of a Merger
Section 12 of the Act defines a ‘merger’ broadly as the direct or indirect acquisition of
control over the whole or part of another firm’s business.² The Competition Appeal Court
in Distillers Corporation (SA) Ltd v Bulmer (SA) (Pty) Ltd confirmed this expansive
approach, holding that the definition extends to the acquisition of shares or assets and
to combinations forming a new entity.³ Starlink’s acquisition of a controlling shareholding
in Vodacom therefore squarely meets the statutory definition of a merger.
