Revised Saudi Notification Thresholds And Implications For Transaction

The legal community has broadly welcomed the Saudi General Authority for Competition's (GAC) updated 5^th edition of the GAC Merger Control Guidelines (Guidelines). For a general overview see our client brief on the guidelines. Still, the remaining ambiguities warrant a more in-depth discussion of specific criteria. This client brief will consider the newly amended thresholds in specifically and address possible minimum Saudi turnover of the target as well as the GAC's authority to call in transactions that fall below the thresholds.

Target's Saudi turnover requirement and local effect

A key change introduced with the 5th edition of the Guidelines is the recalibration of the notification thresholds. The new framework introduces a more nuanced approach, with different criteria for acquisitions, mergers, and joint ventures. A key point of uncertainty regarding the new thresholds relates to the target entity's contribution to the Saudi turnover threshold applicable