Introduction In Zimbabwe the process and procedure of effecting Mergers and Acquisitions (M&As) is regulated by the Competition Act [Chapter 14:28] and the Companies and Other Business Entities Act ‘the Companies Act’. There are different reasons why companies merge, in most cases small or failing companies merge in order to survive, grow or avoid total closure. The year 2020, was an unprecedented year and we have seen most businesses shutting down due to the negative financial effects of the COVID 19. With the new variants of COVID 19, it is still not certain as to how companies in general will survive. It is vital to make use of corporate growth strategies, particularly, mergers and acquisitions in order to avoid closure and bankruptcy. Mergers and Acquisitions M&As involve a process of consolidating two or more companies into one or assets as a way of stimulating growth, gaining competitive advantages, increasing market share, influencing supply and demand of goods and services etc. The differences between the two is that, with acquisitions a large company buys a smaller company gaining access to its infrastructure, human resources, assets as well as intellectual property and so on. In simple terms, the larger company is taking over the other smaller or failing company. Whereas in a merger, two relatively equal entities though not always the case, decide to partner up and start up a new company that accomplishes the goals of each company. In terms of the Competition Act, a ‘merger’ is defined in three ways; as the direct or indirect acquisition or establishment of a controlling interest, the purchase or lease of shares and the amalgamation or other combination with a company and or any other means specified in terms of the Act. However, the definition under the Companies Act provides that a “merger” is an amalgamation or consolidation of two or more companies. Therefore, controlling interest is any interest that allows the holder or the controlling company thereof to exercise, directly or indirectly, any control whatsoever over the activities or assets of the undertaking and any asset. In light of mergers, control must be acquired or established over the business of another company. A company cannot establish or acquire control over another company which it already controls, and by the same token, it cannot gain control over a business which it already controls as that business is owned by the company itself. Control is usually the key element which forms the focus of determination as to whether or not a transaction is notifiable. Section 227 of the Companies Act provides that, a private or public company or cooperative company may undertake and complete a merger at any time as provided by the Competition Act. There are factors that the Competition and Tariff Commission take into account to avoid mergers that substantially prevent or lessen competition. These factors in terms of S32(4a) of the Competition Act may according to relevance include: the actual and potential level of import competition in the market; the ease of entry into the market, including tariff and regulatory barriers; the level, trends of concentration and history of collusion in the market; the degree of countervailing power in the market; the likelihood that the acquisition would result in the merged parties having market power; the dynamic characteristics of the market including growth, innovation and product differentiation; the nature and extent of vertical integration into the market; whether the business or part of the business of a party to the merger or proposed merger has failed or is likely to fail; whether the merger will result in the removal of efficient competition. The effects of a merger The effect of a merger is that merging companies become one single company which will be the new or surviving company and that the separate existence of all such companies except the surviving or new company terminate. The surviving or new company owns all of the assets and liabilities of, and claims by each company that was a party to the merger, in each case of every kind whether in contact, delict or otherwise and whether known or unknown. With regards to legal matters, all legal actions or other claims against any company that was a party to the merger may be continued against the surviving or new company, which will be substituted in the lawsuit or claim for the company whose existence has terminated. The constitutive documents of the merger shall be the constitutive documents as set forth in or together with the contract. Lastly, the shares of each company that was a party to the merger are converted into shares, other securities or debt or other obligations or the right to receive money of the surviving or new company, and the former holders of such shares shall be entitled only to the rights provided in the contract of merger. Is our economic environment conducive for M&As? In conclusion, it is my considered view that this volatile situation that we find ourselves in will likely remain favorable for the M&As to continue economic growth. When companies merge its natural for other companies to be nervous and in such an environment it encourages competition and that competition drives productivity up and costs for consumers down. The impact of M&As is contingent almost entirely on the intentions of the companies involved, the nature of the deal, and how the M&A is handled once finalized. With that said, this is a great opportunity for companies to merge and establish acquisitions.