MERGER: GOODBYE INVESTMENT AND SECURITIES ACT; WELCOME FEDERAL COMPETITION AND CONSUMER PROTECTION ACT

Abstract

Merger is an important aspect of corporate law practice in Nigeria and other jurisdictions. Merger is generally referred to as the fusion of two or more companies or corporate entities into one. Before now in Nigeria, merger was governed by Investment and Securities Act (ISA) which was signed into law in 2007. However, a little after a decade, merger in Nigeria is now governed by Federal Competition and Consumer Protection Act (FCCPA) signed into law in 2018. While ISA had Securities and Exchange Commission (SEC) as its regulatory agency, FCCPA had Federal Commission and Consumer Protection Commission (FCCPC) as its administering agency. This paper examined merger under the new Act. It began with conceptual clarifications. The different types of mergers were adequately analysed. The categories and thresholds for mergers and more importantly the procedure for the different categories of merger were adequately covered. This research work highlighted the innovations, challenges and prospects of the new Act. A comparative approach was also adopted as merger in South Africa was appraised. There were findings in this work which include among others; merger leads to economic stability, it also leads to economic growth. Recommendations were also made, prominent was that corporate entities should not be in a hurry to merge or merge out of desperation. This paper in addition recommends merger in other sectors of the economy like airline companies in the aviation sector can merge to promote a more efficient service delivery.