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- Merger Screening
1. What type of transactions are caught by the merger control regime?
1.1.1 Type of transactions that are caught by the merger control rules?
A transaction is caught by the merger control rules if it brings a change of control on a lasting basis resulting from:
a) the merger of two or more previously independent undertakings or parts of undertakings; or
b) the acquisition, by one or more persons already controlling at least one undertaking, or by one or more undertakings, whether by purchase of securities or assets, by contract or by any other means, of direct or indirect control of the whole or parts of one or more other undertakings.
1.2 Joint ventures
1.2.1 What types of joint ventures are caught by the merger control rules?
The creation of joint ventures performing on a lasting basis all the functions of an autonomous economic entity resulting in permanent structural market change, i.e. a so-called "full-function" joint venture.
2. Establishing jurisdiction for notification of mergers
2.3 General thresholds
Merger filing is needed if:
- The market share of the undertakings concerned exceeds 40% on any market in Algeria; or
- The concentration may impact competition by strengthening the dominant position of a stakeholder in a given market.
Foreign investment is subject to prior registration with the National Agency for Investment Development but is not subject to approval.
2.4 Other national thresholds for ex ante merger control (e.g. sector-specific rules)
At least 51% of the share capital of an undertaking must be held by one or several citizens of Algeria if the undertaking operates in industries, “which are strategic for the national economy”. However, the final executive regulation naming those industries has not been promulgated as of May 2020. The list of industries is expected to include:
- mining (except quarries and aggregates);
- railroad infrastructure, airports, ports; and
Investment in certain sectors is regulated and requires approval, e.g.:
- the oil and gas sector;
- the pharmaceutical sector;
- banking and insurance;
- the automotive industry.
2.5 Foreign-to-foreign mergers
2.5.1 Do any exemptions, special thresholds etc. apply to foreign-to-foreign mergers, i.e. where none of the undertakings concerned is domiciled in the jurisdiction?
Notification may not be required if the merger is likely to increase employment in Algeria, increase competition in Algeria or reinforce the market position of small and medium-sized businesses in Algeria.
Foreign-to-foreign mergers are notifiable.
and last updated on 26-05-2020 by
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