The Control and Regulation of Merger and Take-Over Arrangements in Tanzania a dimensional analysis of the Fair Trade Practices Act, 1994
Ngassa Mbassa Dindi (The Institute of Finance Management)
Download Article | Published On 01/07/1994

Abstract

One of the recently enacted legislation in Tanzania is the Fair Trade Practices Act, 1994 (hereinafter referred to as the Act)'. The main thrust of this legislation is (in the words of its long title) to encourage competition in the economy by prohibiting restrictive trade practices, regulating monopolies, concentration of economic power and prices, to protect consumer and to provide for other related matters. This paper is an attempt to make a dimensional analysis to the fourth part of this legislation. This part proclaims some positive rules which inter alia, regulates and controls the merger and takeĀ­ over transaction2 .The paper starts by investigating the sum and substance of the merger and take-over arrangements as coined in the legislation. Here, the paper observes that, the definitions of take-over and merger given in the Act are factually sufficient. The paper however comments that, some of the definitions contained in the Act are unreasonably wide. The paper proceeds to depict the control and regulation mechanism and regulation mechanism as laid down in the Act. The paper goes on to make an account for desired goal behind the control and regulation of merger and take-over arrangements. On that account, the paper strongly maintains that, in imposing the regulatory and control measures, no due regard was made to investors interest. The control and regulation measures enshrined in the Act portrays only national interests.

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