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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?
In both the aviation industry and the communications and multimedia sectors horizontal and vertical mergers are caught by the merger control rules.
A “merger” is defined as:
- two or more undertakings previously independent of one another merge;
- one or more undertakings acquire control (direct or indirect) of the whole or part of one or more other undertakings;
- as a result of the acquisition of the assets, or a substantial part of the assets, of another undertaking the acquirer is going to replace, or substantially replace, the other undertaking in the business, or part of the business, in which it was engaged immediately before the acquisition; or
- a joint venture is created to perform on a lasting basis all the functions of an autonomous entity.
Certain commercial activities, agreements and mergers are exempt.
2. Establishing jurisdiction for notification of mergers
2.3 General thresholds
2.4 Other national thresholds for ex ante merger control (e.g. sector-specific rules)
There are no jurisdictional thresholds, but any merger in the aviation industry is unlawful if it gives rise to a substantial lessening of competition in any market affecting Malaysia. If the parties assess that this may be the case, a merger notification should be made to the Malaysian Aviation Commission. The Commission is more likely to investigate a merger or anticipated merger if:
- the combined turnover of the undertakings concerned was at least RM 50,000,000 in Malaysia in the last financial year; or
- the combined global turnover of the undertakings concerned was at least RM 500,000,000 in the last financial year.
Communications and multimedia sectors
There are no jurisdictional thresholds in the communications and multimedia sectors, but the Malaysian Communications and Multimedia Commission considers a combined market share of more than 40% is indicative of market dominance.
and last updated on 26-03-2020 by
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