- What are the Procedures and Requirements for Reporting Economic Concentration?

For a report on an economic concentration process (Merger or Acquisition) to be considered complete and legally effective, a set of conditions and procedures stipulated in Articles (13, 14, 15, 16) of the Implementing Regulations must be met.

Conditions for Report Completeness

The report is only valid upon achieving the following:

1. Timing: Submission at least 90 days before completing the deal.
2. Forms: Filling out designated forms and attaching all required documents with a declaration of their correctness.
3. Fees: Payment of the financial fee prescribed for examining economic concentration.
4. Detailed Report: Submitting a report including:
   • Information on parties and the deal.
   • Relevant sectors and markets.
   • Potential impact on competition.
   • List of most prominent clients and competitors.

Calculating Time Periods (Stop the Clock)

The application study period is 90 days, but:

• The Authority has the right to stop the calculation of the period if it requests additional information, and the period does not resume until the required information is submitted.
• If the end of the period falls on an official holiday, the deadline extends to the first following working day.

Pre-Notification Discussions

Establishments have the right to initiate discussions with the Authority regarding the intended concentration process before submitting the official report. These discussions are optional and do not carry legal effect, but are useful for clarification, provided they are not used for coordination violating the Law.

What Happens After Submitting the Report? (Decision)

The Authority's Board issues its decision within a period not exceeding 90 days from the completion of the report, and the decision takes one of the following forms:

1. Approval.
2. Conditional Approval: Establishments commit to specific conditions monitored later.
3. Rejection: Must be justified.

Important Note: If the 90 days pass without a decision or notification being issued, this is considered implicit approval of the concentration.

Authority in Case of Non-Reporting

Even if establishments fail to submit the report, this does not prevent the Authority from initiating an examination of the economic concentration (whether before or after its completion). If the concentration takes place and proves to be a violation, the Board has the right to compel establishments to correct the situation or dissolve the merger, bearing all damages and consequences.

Reference: Implementing Regulations of the Competition Law (Articles 13-18, 23-25) - General Authority for Competition