The Egyptian Prime Ministry has approved the Prime Minister’s draft law amending some provisions of Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices.
The draft law adds a definition of concentration. According to the draft law, a concentration shall be deemed to arise when a change in the control or material influence on a lasting basis results from the merger of two or more previously independent persons or parts of these persons, or the acquisition of the ability of one or more persons to exercise control or material influence, directly or indirectly, over the whole or parts of one or more other persons, whether by the purchase of securities or assets, by contract or by any other means, or the establishment or acquisition of a joint venture by two or several other persons, performing on a lasting basis all the functions of an autonomous economic entity.
Additionally, the draft law lists the transactions that are exempt from the definition of a concentration, offers clear definitions of control and material influence, and mandates the notification of concentrations to the Egyptian Competition Authority