The commission said businesses must seek approval where a merger or acquisition meets the thresholds set under the Federal Competition and Consumer Protection Act (FCCPA) 2018.

According to the FCCPC, the law gives it power to review transactions, approve them with or without conditions, or block them where necessary.

It said the requirement covers several forms of business combinations. These include share purchases, asset acquisitions, joint ventures and other arrangements that fall within the legal definition of a merger.

The commission explained that prior notification allows it to examine whether a proposed deal could weaken competition in any market in Nigeria or create public interest issues.

It added that the process also helps regulators track market developments and understand how competition is changing across industries.

The FCCPC urged businesses and their advisers to approach the commission early if a planned transaction may require notification.

It said early engagement, including pre-notification consultations where needed, can give parties more certainty, speed up reviews and help them meet legal obligations.

The regulator also issued a warning on non-compliance.

“The FCCPC emphasises that failure to notify a notifiable transaction constitutes a contravention of the FCCPA and shall attract stiff penalties and other enforcement actions.”

It advised parties to take all necessary steps before implementing transactions that fall within its jurisdiction.

The commission asked stakeholders seeking clarification on the mergers and acquisitions regulations to contact the FCCPC or visit its website.

It added that it is fully committed to promoting fair competition, protecting consumers and supporting a transparent business environment in Nigeria.

The deal ranks among the biggest mergers in a sector still adjusting to slower growth after the pandemic surge.

Under the terms of the agreement, Udemy shareholders will receive 0.8 shares of Coursera for each Udemy share they own. Based on recent market prices, that puts Udemy’s valuation at roughly $930 million and represents a notable premium on its recent trading levels. 

The transaction is expected to close in the second half of next year, subject to regulatory and shareholder approvals.

This deal brings together two platforms with different strengths at a time when scale counts more than ever. Coursera has built its reputation through partnerships with universities and institutions, providing degrees and professional certificates. 

Udemy, by contrast, runs a large marketplace of independent instructors selling courses to individuals and companies. Together, they are betting that breadth, brand and reach will help them win more corporate clients and lock in steadier subscription revenue.

Growth in consumer enrolments has cooled, while employers are becoming more selective about where they spend on training. Both companies are now positioning the combined platform as a go-to destination for workforce skills in areas such as data, software development and emerging technologies.

Greg Hart, Coursera’s chief executive, described the merger as a response to fast-changing job demands. “We’re at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry. Organisations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master,” he said.

Udemy’s Chief Executive, Hugo Sarrazin, said the tie-up would extend the company’s reach and speed up product development. “Through this combination with Coursera, we will create meaningful benefits for our learners, enterprise customers, and instructors, while delivering significant value to our shareholders, who will participate in the substantial upside potential of the combined company,” he said.

Financially, the companies expect the merger to enhance their cost base. They project more than $1.5 billion in combined annual revenue and estimate cost savings of about $115 million a year within two years of closing. Coursera has also indicated it plans to pursue a sizeable share buyback programme after the deal is completed.

The boards of both companies have unanimously approved the transaction. Once closed, Coursera shareholders are expected to own about 59 per cent of the combined company, with Udemy shareholders holding the remaining 41%. 

The enlarged group will operate under the Coursera name, trade on the New York Stock Exchange, and be headquartered in Mountain View, California. Udemy’s shares will be delisted from Nasdaq.

Online education stocks have lagged broader indices this year, weighed down by pricing pressure and doubts about long-term returns from new technology investments. Udemy shares are down sharply year-to-date, while Coursera has also fallen, leaving both well below their post-listing highs.

Any explorative-minded tech startup owner sees the possibilities that come with mergers, building more solutions and the like. You must decide whether to take in the breathtaking view from the summit, plant your flag and claim territory, or embark on a new adventure altogether. Here’s your comprehensive guide to the three most common tech startup exit strategies:

1. Merging into the Sunset

A merger is akin to two ships joining forces to become a mighty armada. When you combine your resources, technologies, and market share with another company, you create a stronger entity. This strategy is beneficial if you’re looking for:

• Faster growth: Merging with a larger company can provide access to their resources and expertise, accelerating your growth trajectory.
• Synergy: Combining your unique strengths with another company can create a powerful force in the market.
• Diversification: A merger can help you enter new markets and reduce your risk profile. 

However, there are potential downsides to consider:

• Loss of control: You may have to relinquish some control over your company’s direction and decision-making.
• Culture clashes: Merging two different company cultures can lead to friction and conflict.
• Loss of identity: Your original startup brand and vision may be diluted or lost in the merger.

2. Acquisition: The Big Payday

Imagine a giant tech whale swallowing your startup whole. That’s the essence of an acquisition type of startup exit. A larger company buys your entire business, providing a clear path to liquidity for founders and investors. This can be a lucrative option if you’re looking for:

• A quick and clean exit: Acquisitions offer a clear path to liquidity for founders and investors.
• A financial windfall: Depending on the deal’s terms, you could make a significant sum of money.
• Access to resources: The acquiring company can provide you with the resources needed to take your technology or product to the next level.

Before accepting that fat check, consider:

• Cultural fit: Is the acquiring company’s culture a good fit for your team?
• Long-term vision: What are the acquiring company’s plans for your technology or product?
• Employee retention: How will the acquisition impact your team and their future with the company?

3. IPO: The Bell Rings on Your Success

This is the ultimate dream for many tech entrepreneurs – taking their company public on a stock exchange like NASDAQ. An IPO allows you to raise capital by selling shares of your company to the public. This can be a great way to:

• Raise massive amounts of capital: An IPO can provide the resources needed to fuel rapid expansion.
• Increase your company’s visibility and credibility: An IPO can make your company a household name and attract top talent.
• Create wealth for your shareholders: If your company performs well after the IPO, shareholders can stand to make significant profits.

Of course, the road to an IPO is paved with challenges:

• Compliance: Going public means complying with a complex set of regulations and reporting requirements.
• Market volatility: The success of an IPO is highly dependent on market conditions.
• Loss of control: Once public, you answer to shareholders and the market, limiting your freedom in making decisions.

Beyond the Big Three

While mergers, acquisitions, and IPOs are the most common exit strategies, there are a few other options:

• Management Buyout (MBO): Your existing management team buys out the company from its investors, maintaining control and continuity within the company.
• Employee Stock Ownership Plan (ESOP): This option allows your employees to become owners of the company, facilitating a sense of ownership and commitment.
• Liquidation: If your startup isn’t profitable or you’re unable to find a suitable buyer, you may need to liquidate your assets and wind down the business.

No matter which exit strategy you choose, there are key steps you’ll need to take:

• Hire experienced advisors: Seek out legal, financial, and tax professionals to guide you through the process.
• Develop a clear exit strategy: Define your goals and timeline for exiting your startup.
• Prepare your company: Get your financial records in order and ensure your business is attractive to potential buyers or investors.
• Negotiate effectively: Don’t be afraid to walk away from a deal that doesn’t meet your expectations.

Always keep in mind that exiting your startup is a major decision. Take your time, do your research, and choose the path that best suits your needs and ambitions.

Beyond the Exit

Exiting your startup doesn’t mark the end of your entrepreneurial journey. Many successful entrepreneurs have gone on to launch new ventures after exiting their first companies. The experience gained from exiting your first startup will be invaluable as you embark on your next adventure.

The most important thing is to stay true to your passion and keep creating value for the world.

Shareholders and the investment community await further details, as the proposed acquisition, set at 65 kobo per share, may significantly impact the company’s listing status.

Mary Agha, the Company Secretary, signed the Proposed Share Acquisition notice, revealing that the offer price of 65 kobo per share represents a 30% premium over the company’s last traded price of 50 kobo on August 12, 2021.

However, before the acquisition can be finalized, regulatory approval is required in accordance with section 715 of the Companies and Allied Matters Act, No.3 of 2020, as well as other relevant rules and regulations.

Coronation Insurance Plc emphasized that if all conditions of the acquisition are approved by the Federal High Court, the company will be delisted from the Nigerian Exchange Limited (NGX). Shareholders will receive detailed information about the acquisition during the Annual General Meeting of the company.

Shareholders of Coronation Insurance and the general public are advised to exercise caution when engaging in transactions involving the company’s shares until additional information regarding the proposed acquisition is made available.

Coronation Insurance Plc was initially listed on the NGX on August 31st, 1990, with a total of 23,991,679,506 outstanding shares.

At the end of trading activities, the company’s share price experienced a decline of -3.57%, closing at N0.81 per share. This resulted in a market capitalization of N19.43 billion