GAC nods to Noon’s acquisition of NAMSHI

Logos of "Noon AD Holdings Ltd" and "Namshi Holding Ltd."

The General Authority for Competition (GAC) approved the application submitted by Noon AD Holdings Ltd. for economic concentration to fully acquire Namshi Holding Ltd.

In a statement today, Jan. 24, GAC said there are no concerns that this acquisition would affect competition in Saudi Arabia, in light of a highly competitive market. Several competitors provide quite similar services, which reflects fair competition.

The authority added that any impact on competition level is unlikely, as all brick-and-mortar and online stores with the same production lines as the deal parties have a competition restriction. As they offer similar products, there is no restrictions for replacement.

GAC defined all categories of the online retail industry, represented by electronics, home appliances, clothes, cosmetics and personal care products, furniture, other products such as grocery, games, etc. It added that the deal implies a horizontal concentration, noting that its geographical location is the Saudi market, including all websites and global e-platforms that are launched to sell products in the Kingdom.

In August 2022, Emaar Malls Management LLC, a wholly-owned subsidiary of Emaar Properties, and Noon entered into definitive documentation for Emaar Malls to sell the entire share capital of Namshi to Noon for a total cash consideration of AED 1.23 billion ($335.2 million), Argaam earlier reported. 

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