Arab News, Wed, Apr 03, 2024 | Ramadan 24, 1445
Saudi authority approves 18 economic concentration requests in March
Saudi Arabia:
Saudi Arabia continued to record robust business activity in March with the
authorities approving 18 requests for economic concentration, official data
showed.
Last month, as many as 17 concentration requests
were submitted to the General Authority for Competition. The authority also
oversaw a notable influx of cross-border deals, encompassing 10 acquisitions,
five joint ventures, two agency deals, and one merger.
Noteworthy local transactions included Health
Home’s acquisition of 39 pharmacies from Taawon Investment Group, Cigalah
Group’s acquisition of a 30 percent stake in DEEF Pharmaceutical Industries and
Co., and Almarai’s complete acquisition of Etmam Logistics.
On the international front, France’s SIB
International secured a 55 percent stake in Saudi Arabia’s Alesayi Electronics,
highlighting the global interest in the Saudi market.
Among the significant deals was the joint venture
between Ajlan and Bros Holding Group and the UK’s Stratasys Solutions Ltd.,
focusing on developing 3D printing services.
Additionally, the Netherlands’ AXIA Power formed a
joint venture with Saudi Arabia’s FAS Energy to undertake an electricity supply
and generation project.
A collaborative venture has been formed between
Heinemann Africa Ltd., the Jordanian Duty Free Co., and the Arab Catering and
Trading Co. to manage a space spanning over 10,000 sq. meters at King Abdulaziz
International Airport.
Also, among the requests approved was US' Amentum
Holding LLC’s merger with Amazon Holdco Inc. as well as Brazil’s Minerva’s full
acquisition of Marfrig Global Foods.
This is a continuation of the authority’s efforts
last year which saw 150 non-conditional approvals and three conditional
approvals in the first 10 months, underlining its role in facilitating business
expansion and collaboration.
The third quarter of 2023 alone saw the approval
of 41 mergers, acquisitions, and joint ventures, with 39 receiving unconditional
clearance and two conditionally approved.
The authority’s diligent review of applications
for inorganic growth ensures that buyouts, mergers, and joint ventures align
with the Kingdom’s regulatory standards.
By curbing illegal monopolistic practices and
fostering market performance, the authority not only builds confidence among
consumers and businesses but also significantly contributes to Saudi Arabia’s
evolving investment landscape.