Competition Board Clearance In Mergers And Acquisitions

1. Introduction

In mergers and acquisitions (“M&A“) transactions, obtaining clearance from the relevant sectoral regulatory authority may be required depending on the nature of the target company’s operations. In particular, where the target company holds a mining licence, obtaining clearance from the Mining and Petroleum Affairs General Directorate (“MAPEG“), which operates under the auspices of the Ministry of Energy and Natural Resources (the “Ministry“), constitutes a mandatory condition precedent in addition to the clearance required from the Competition Board.

Law No. 3213 on Mining (the “Law“) and the Mining Regulation (the “Regulation“) subject changes in the shareholding structures of legal entities holding mining licences to a regulatory oversight mechanism. This oversight serves the purposes of ensuring that mineral resources are exploited in accordance with the national interest, maintaining the adequacy and competence of licence holders, and safeguarding the