FCCPC cautions companies over non-compliance with merger and acquisition regulations 

The Federal Competition and Consumer Protection Commission has warned firms, legal advisers, and transaction parties against breaching statutory requirements governing mergers and acquisitions in Nigeria.

This was contained in a statement issued by the Director of Corporate Affairs, Ondaje Ijagwu.

The Commission said the warning is necessary to ensure compliance with the provisions of the Federal Competition and Consumer Protection Act, 2018.

The FCCPC reiterated that it has the legal authority to review, approve, approve with conditions, or prohibit mergers and qualifying business combinations once notified.

The FCCPC noted that the notification process allows it to assess whether proposed transactions could substantially reduce competition or raise public interest concerns in any relevant market.

The Commission encouraged firms and their advisers to engage early in the transaction process, particularly where deals may require regulatory approval.

It advised stakeholders to take all necessary steps to comply with merger notification requirements before proceeding with any transaction.

Nigeria has recorded a wave of mergers and acquisitions in the past few months. In the startup ecosystem, five major deals have occurred.

Flutterwave acquired Mono in an all-stock transaction valued between $25 million and $40 million to strengthen its financial infrastructure capabilities, while Paystack moved to acquire Ladder Microfinance Bank, expanding beyond payments into full-stack financial services.

Zenith Bank also completed the acquisition of Kenya’s Paramount Bank, securing 100% ownership after obtaining regulatory approvals from both Nigerian and Kenyan authorities, becoming the fourth Nigerian bank to establish operations in Kenya.