Saudi Arabia: The General Authority for Competition's report on economic concentration applications in 2024

21 Jan 2025    2 minute read

In brief

The General Authority for Competition ("Authority") in Saudi Arabia has recently published insights on the economic concentration applications received and examined in 2024, revealing significant trends in merger and acquisition activity across various sectors. This alert summarizes the highlights of the report published by the Authority.

Contents

1. Steady increase in the number of merger control filings in 2024

  • As illustrated in the graph below, the Authority issued 202 No Objection Certificates in 2024 ("No Objection Certificates"), representing the highest number of No Objection Certificates issued by the Authority in a year. The Authority also issued 105 No Notification Required Certificates confirming that certain transactions did not require a full filing ("No Notification Required Certificates"). There are currently 10 applications submitted in 2024 which are still under review:

CASE4064950_chart 1

  • In 2024, the total number of No Objection Certificates increased by 17.4% compared to 2023, showing a continuous increase in the number of filings received by the Authority from previous years. 
  • The Authority issued 48, 34, 60 and 60 No Objection Certificates respectively during each quarter of 2024.
  • No applications were either rejected or conditionally approved during this period.

2. Breakdown of the data related to merger control filings in 2024

  • The vast majority (81%) of the applications received by the Authority related to acquisitions, while joint ventures represented 15%, and mergers accounted for 2% of the filings made in 2024.
  • Over half (53%) of the filings related to horizontal transactions (i.e., between entities being actual or potential competitors), indicating many businesses were looking to consolidate their presence on the Saudi market, while 31% related to conglomerate relationships, and 16% to vertical integrations.
  • The number of merger control filings involving at least one Saudi entity as one of the parties to the transaction represented 44.06%, while those with foreign entities with a presence or an influence in the Saudi market amounted to 55.94%.
  • In comparison to 2023, joint ventures involving both local and foreign parties increased by 25%, and acquisition requests increased by 4.8%, showing a continuous growth of the collaboration between local and international players.
  • The majority of the transactions filed with the Authority related to transactions taking place in Riyadh (67.78%), followed by the Makkah region (17.78%). Overall, 44.06% of applications involved Saudi acquirers and merging entities, while 30.3% of participating entities were listed companies in the Saudi market, representing a 2.6% increase from 2023.

3. Key sectors subject to merger control filings in 2024

  • As shown in the graph below, the manufacturing sector was the largest one represented with 67 applications, followed by the information and communications sector with 39 applications, and wholesale and retail trade, along with motor vehicle repair, with 22 applications.

CASE4064950_chart 2

For further details on the Saudi Competition Law and its practical impact on your operations in Saudi Arabia, please do not hesitate to contact our Saudi Competition team.

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Ruwaa AlAbdullatif, Trainee Associate, contributed to this legal update.

Contact Information
Abdulrahman AlAjlan
Partner at BakerMcKenzie
Riyadh
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abdulrahman.alajlan@bakermckenzie.com
David Monnier
Partner at BakerMcKenzie
Riyadh
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david.monnier@bakermckenzie.com
Marwan Othman
Associate at BakerMcKenzie
Riyadh
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marwan.othman@bakermckenzie.com

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