The General Authority for Competition (GAC) in Saudi Arabia has introduced new thresholds for merger control, marking significant changes from the previous standards. In the past, any merger would be subject to filing requirements if combined annual worldwide turnover for all parties exceeded SAR200m. The new requirements, however, present a different approach.
Under the new regulations, a merger filing will be required if all of the following thresholds are met:
- Each of the parties involved has achieved SAR100 million or more in yearly revenues
The change in requirements signifies a shift in merger control practices in Saudi Arabia. With these new standards in place, the GAC seems to be moving towards a system that provides more precise evaluation and control of mergers and further ensures a fair and competitive market landscape within the country.
Legal firms working with corporations engaged in Saudi Arabia’s market should be aware of these new standards and adjust their practices accordingly. These changes in regulations will likely influence how mergers are approached and could signal shifts in the country’s wider economic strategies.
For more precise information regarding these changes, you can refer to the original notice posted by the Allen & Overy LLP on JD Supra.