In pursuant of the Federal Competition and Consumer Protection Act (FCCPA), which President Muhammadu Buhari signed into law on January 30, 2019, the leaderships of the Security and Exchange Commission (SEC) and that of Federal Competition and Consumer Protection Council (FCCPC) came have clarified areas of overlap.
The group also defined their roles on mergers, acquisition and other business combinations in pursuant to FCCPA.
According to the group, the key role of the FCCPC was to review all mergers and other business combinations or arrangements to ensure that such combinations didn’t distort or impede the markets.
A joint statement signed by Mrs. Mary Uduk of SEC and Mr. Babatunde Irukera, the Director-General of FCCPC, both bodies explained that “Prior to the enactment of the FCCPA, and transmutation of the Consumer Protection Council (CPC) to the FCCPC, merger reviews, including notifications were handled by the SEC pursuant to the Investment and Securities Act (ISA).
“The FCCPA discontinued the role of SEC in this regard and mandates the FCCPC to set, gazette and publish thresholds applicable to all mergers and combinations, whether small, medium or large. This is without prejudice to the powers of SEC to determine the fairness of transactions involving public companies.