HomeAbstract of 12th-icbmeconfInvestigating Public Interest Conditions in Merger Control and Economic Transformation in South Africa

Investigating Public Interest Conditions in Merger Control and Economic Transformation in South Africa

  • Jun 10, 2026
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Abstract Book of the 12th International Conference on Business, Management and Economics

Year: 2026

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Investigating Public Interest Conditions in Merger Control and Economic Transformation in South Africa

Dr. Anton van Wyk, James Sagoe; Lerato Mothibi

ABSTRACT:

In South Africa, where economic inequality remains a persistent legacy of the past, competition policy has evolved beyond its traditional role of promoting market efficiency. The Competition Act 89 of 1998 incorporates public interest conditions (PICs) within merger control, enabling the Competition Commission to assess mergers in terms of employment, SME participation, and the inclusion of historically marginalized groups. Against this backdrop, this study investigates how merger control can serve as a mechanism to advance economic transformation. The analysis is based on a dataset of 435 mergers approved between 2010 and 2024. A quantitative methodological approach is employed, using Probit and Logit models to evaluate the determinants and enforcement of key public interest conditions, namely Black Economic Empowerment (BEE), Employee Share Ownership Plans (ESOPs), and Supplier Development Funds (SDFs). The findings reveal that BEE conditions are significantly associated with higher unemployment levels among black men and women and are more frequently imposed in concentrated sectors such as mining, telecommunications, and finance. ESOPs are influenced by merger size, real GDP, total assets acquired, and sectoral dynamics, while SDFs are shaped by sectoral factors such as agriculture and manufacturing, as well as merger duration, asset size, and black female unemployment. The results demonstrate that merger control in South Africa plays a dual role: safeguarding competition while actively contributing to economic transformation. This study contributes to broader economic debates by linking competition policy with development outcomes and providing sector-specific insights into the role of public interest regulation in promoting inclusive growth.

Keywords: Competition Policy; Economic Transformation; Inclusive Growth; Merger Control; Public Interest Conditions