Control And Material Influence Under The New Egyptian Merger Control Regime

Aside from notification thresholds change of control requirements are used to limit merger control notification obligations to transactions that potentially impact competition. Pure change of control regimes may not catch all relevant transactions. Even where a party does not have control over an undertaking, they may still be able to influence the operations of the undertaking. Such influence could be relevant from a competition law perspective. Therefore, many jurisdictions apply a decisive or material influence test instead of a pure change of control test. The Egyptian merger control regime includes a material influence test. This material influence test is particularly broad compared to other jurisdictions. This client brief discusses the Egyptian material influence test as well as means of control considered by the Egyptian Competition Authority (ECA).