Paradigm shift in the landscape of merger control in EgyptJune 12, 2023
In a recent interview with LegalcommunityMENA, Yehia Shahine, Partner & Head of Arbitration at ALC – Alieldean Weshahi & Partners, discussed the implications of the recent amendment to the Law regulating the Protection of Competition and Prohibition of Monopolistic Practices in Egypt. This amendment introduces a pre-Merger or Acquisition (M&A) mandatory approval regime, replacing the previous post-closing notification system. We explored the changes brought about by this new law and the potential challenges in its implementation.
How does this new law change existing laws or regulations?
On December 31, 2022, the amendment of the Law regulating the Protection of Competition and Prohibition of Monopolistic Practices No. 3 of the year 2005 (hereinafter “ECL”) entered into force. The amendment to the Law introduces a significant shift from post-M&A notification to a mandatory pre-approval regime for economic concentration transactions. It also clarifies various aspects, including the definition of economic concentration, notification thresholds, timeline for merger control review, and fines. This amendment aims to streamline the M&A landscape in Egypt and ensure compliance with competition regulations.