GAC approves 38 concentration applications in Q3 2021

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The General Authority for Competition (GAC) received nearly 77 economic concentration applications during the third quarter of 2021, and issued letters of no objection for 38 of them, a rise of 8% compared with the same period a year earlier.

In a statement, the authority stated that it receives economic concentration reports related to mergers, acquisitions, and joint ventures (JVs), and then studies them to issue the proper decisions. In addition, the GAC studies the market and the sector in case of competition law violations or to boost competition.

According to the statement, the GAC issued 23 approvals for applications that were not required to be reported, and16 applications are still under study.

The authority added that the acquisition applications reached 28, representing 74% of the total number of approved applications.

Meanwhile, merger and JV applications amounted to six and four, respectively. Sector-wise, the wholesale and retail trade came first with 11 applications, or 29% of the total number. It was followed by manufacturing with 10 applications, representing 26% of the total number.

The GAC indicated that year-to-date it issued 99 decisions of no objection and 89 decisions of not to report; the largest numbers in its history.

Saad Al Masoud, spokesman for GAC, said the authority is currently studying some applications of mergers and acquisitions and the establishment of JVs, expecting to complete them as soon as possible after studying the competitive evaluation of each deal separately and ensuring that there are no anti-competitive effects.

He added that the increase in the number of applications is attributed to the rise in the number of local and foreign establishments that are subject to the competition law.

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