EGYPT

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Content last updated: 20-03-2020

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  • Merger Control Regime
  • Merger Screening

1. Supranationality

1.1 Membership of Supranational Organization

1.1.1 Is the jurisdiction a member of/party to a supranational jurisdiction?

Egypt is a member of the African Economic Community (AEC).

1.1.2 Is the jurisdiction itself a supranational jurisdiction?

No.

1.1.3 If the answer to Section 1.1.1 and/or 1.1.2 above is in the affirmative, what are the implications hereof?

As a member of the African Economic Community (AEC), Egypt is subject to the supranational authority of the Common Market for Eastern and Southern Africa (COMESA), which is a free trade area and is one of the pillars of the AEC.

This means that if the concentration meets the turnover thresholds applicable for COMESA’s merger control regime, the concentration must be notified to COMESA and Egypt is precluded from applying its own domestic merger control rules to the transaction.

However, this is not entirely supported by national law in every member state.

In member states where there is no established domestic competition authority there is generally not an issue, but in states where there is a competition authority, the issue becomes more complex and risky, since undertakings may face significant penalties for failing to notify a domestic authority.

Kenya, for instance, explicitly requires domestic notification.

Only some other domestic authorities have confirmed that domestic notification is not required if COMESA is notified.

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?

The kinds of transactions that are caught by the merger control rules are defined widely and include a very wide range of transactions, including mergers acquisitions, asset deals, proprietary rights, usufruct, shares or sets up a union, joint management.

Specific thresholds relating to control exist only for banks.

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 turnover in Egypt of the undertakings concerned exceeded EGP 100,000,000 in the last financial year.

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?

Special rules apply on mergers in the telecommunications and financial industries.

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?

Foreign-to-foreign mergers have to be notified if one of the undertakings concerned had a turnover in Egypt exceeding EGP 100,000,000 in the last financial year.

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