FCCPC warns firms over non-compliance in mergers, acquisitions, business combinations
The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned companies, legal practitioners, and other stakeholders against failing to comply with statutory requirements governing mergers, acquisitions, and related business combinations
The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned companies, legal practitioners, and other stakeholders against failing to comply with statutory requirements governing mergers, acquisitions, and related business combinations under the Federal Competition and Consumer Protection Act, 2018.
In a statement signed by the Head of the Mergers and Acquisitions Department, Eme Eyo David-Ojugo, the Commission stated that any transaction meeting the prescribed thresholds under the merger notification guidelines must be submitted for prior review and approval before implementation, in line with Section 93(4) of the Act.
The FCCPC explained that it has the mandate to review, approve (with or without conditions), or prohibit notified mergers, with the objective of safeguarding fair competition, preventing market concentration risks, and protecting public interest within the Nigerian economy.
It noted that the requirement covers a wide range of transactions, including share and asset acquisitions, joint ventures, and other arrangements that fall within the legal definition of a merger under the Act and applicable regulations.
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According to the statement, the notification process allows the Commission to determine whether a proposed transaction could significantly lessen competition in any relevant market, while also enabling effective monitoring of sectoral market dynamics.
The FCCPC urged parties to engage the Commission early in situations where the notifiability of a transaction is uncertain, stressing that pre-notification consultations help provide regulatory clarity and improve compliance efficiency.
It further warned that failure to notify qualifying transactions constitutes a violation of the Act and may attract administrative penalties or other enforcement actions.
Stakeholders seeking clarification were advised to contact the Commission or visit its official website.
The FCCPC reaffirmed its commitment to promoting fair competition, protecting consumers, and ensuring a transparent and competitive business environment in Nigeria.