ALGERIA

Get in contact or get a price estimation from our partner in Algeria Get in contact
Due to the COVID-19 pandemic, certain merger control processes may be affected. We suggest to contact our local partners for more information.
Content last updated: 26-05-2020

Choose the type of information you seek

  • Merger Screening

1. What type of transactions are caught by the merger control regime?

1.1 Concentrations

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

2.3.1 Threshold(s) for when a concentration must be notified under the general merger control regime?

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)

2.4.1 Relevant thresholds for sector-specific or other ex ante merger control 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);
  • energy;
  • defense;
  • railroad infrastructure, airports, ports; and
  • pharma.

Investment in certain sectors is regulated and requires approval, e.g.:

  • the oil and gas sector;
  • telecommunication;
  • 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.

This content was delivered
and last updated on 26-05-2020 by

Legal Cross Border has itself provided all input about merger control in Algeria. This information has been gathered and validated by our in-house lawyers to guarantee the highest quality outcome. This said, we are currently looking for a local partner to cover Merger Control Algeria - please contact us if you would like to be our new partner.