SEC Approves 120 Merger Related Transactions In Three Years

The Securities & Exchange Commission (SEC) approved about 120 merger related transactions in the last three years, its acting Director General, Mary Uduk, said. Ms Uduk disclosed this at the first Annual Seminar of the Committee on Mergers, Acquisitions and Reorganisations of the Nigerian Bar Association (NBA) section on Business Law in Lagos on Thursday.

At an average of 40 merger related transactions every year, the DG said the nature and structure of business dealings and transactions varied in line with the objectives of the transacting entities and operational sectors.

“We had mergers by amalgamation, acquisition of assets only, acquisition of economic rights, MBOs, carve-outs, spin-offs and split-offs, amongst others,” she said. “We are determined to ensure that every shareholder is fairly, equitably and similarly treated and given sufficient information regarding transactions in the capital market,” she added.

Apart from categorising the transactions into small, intermediate and large mergers, she said the Investment & Securities Act (ISA) gives the commission the latitude to review the specified thresholds done to ensure regulation properly targeted at transactions with significant economic impact. The primary challenge with respect to merger related transactions, she noted, was the determination of what transaction was notifiable.

Photo Caption: Acting Director General of SEC, Ms Mary Uduk