According to estimates released by the General Authority for Competition (GAC), the Saudi market will have a record year in terms of Mergers and Acquisitions (M&As).
The Authority approved 49 applications for M&As in Q1 2022, an 88-percent jump from a year ago.
GAC received the highest number of requests for such deals in its history over the last year.
According to the report, the Authority received 101 applications for economic concentration in Q1 2022. This is 42 percent more than in the same quarter a year ago. Economic concentrations include M&As and joint ventures (JVs).
GAC receives economic concentration reports, investigates them, and makes the required judgments. It is also involved with researching the market and sectors in the event of antitrust violations or fostering competition in certain industries.
According to the Authority, 49 certifications were issued certificates of no objection.
On the other hand, 44 applications were treated as not requiring reporting.
Meanwhile, the remaining 8 applications are still being considered by GAC.
Acquisitions account for the majority of requests
Out of a total of 49 certificates of “no objection” issued by GAC during the first quarter of 2022, 40 (or 82 percent) of all such certificates were issued in relation to applications for acquisition.
At the same time, 6 certificates were issued in relation to applications for merger, while the remaining 3 certificates were in relation to the applications for JVs.
Requests from the manufacturing industry led the way with 15 requests, accounting for 31 percent of all requests, followed by requests from the administrative services and support activities sector, which accounted for 12 percent of all requests with 6 requests. Similarly, the transport and storage activities sector received six requests, accounting for 12 percent of all requests.
Notable transactions
The following are some of the most notable deals that took place between Saudi corporations in Q1 2022:
– “Al-Rajhi” Banking and Investment Corporation acquired “Ejadah” Asset Management Group.
– – Dr. Sulaiman Al Habib Medical Group’s acquisition of 25 percent of “Tamkeen” Human Resources.
– Merger of “Walaa” Cooperative Insurance Company with “SABB” Takaful Company.
– The acquisition of 51 percent of Miswak Dentistry by the UAE-based “Gulf Islamic Investments” was the most notable deal between a foreign and a local company.
-India’s “Tales Private” purchased the whole capital of “Air India”, marking the most prominent transaction occurring in the passenger air transport industry and involving Saudi-based foreign corporations
