Antitrust Update: Egyptian Competition Authority Announcement
Following the enactment of the pre-merger clearance regime (the “New Regime”), repealing the post-merger notification regime and introducing the pre-merger clearance regime, the Egyptian Competition Authority (the “ECA”) has released a statement on its official website (the “Statement”) clarifying to the market the plan of action with regards to the New Regime.
In the Statement, the ECA has indicated that the implementation of the New Regime is dependent on the issuance of the executive regulations (the “Regulations”), as the same will establish several important factors necessary for its implementation. This includes: (i) determining the manner in which the relevant turnover thresholds are to be calculated; (ii) the categories for determining the fees required for the notification; and (iii) the parties relevant to the New Regime.
In light of the above, the ECA’s board of directors has decided that the implementation of the New Regime will commence as soon as the Regulations are published.
The ECA has further clarified that the post-merger notification regime will only apply to transactions which have closed prior to 30 December 2022.
As a final note, the ECA has clarified that the guidelines which will be published will include the possibility for the relevant entities and their legal representatives to discuss their transactions and the notification required with the competent ECA officers prior to submitting the notification.