EGYPT Law and Practice Contributed by: Alex Saleh, Asad Ahmad, Hegui Taha and Farida Koura, GLA & Company
the top three shareholders or stakeholders in the acquired person. 2.5 Jurisdictional Thresholds According to Article 19 bis of the Egyptian Competition Law, an “economic concentration” is subject to notification if any of the following thresholds (the ”Financial Thresholds”) are met. • Domestic threshold: The combined annual turnover or assets of all the concerned per - sons in Egypt for the latest year of the last audited consolidated financial statements exceeds EGP900 million (approximately USD17.8 million), provided that the annual turnover in Egypt for at least two of the par - ties involved individually exceeds EGP200 million (approximately USD4 million) for the last year according to the last audited con - solidated financial statements. • International threshold: The combined annual turnover or assets of the concerned per - sons worldwide for the latest year of the last audited consolidated financial state - ments exceeds EGP7.5 billion (approximately USD150 million), provided that the annual turnover in Egypt for at least one of the par - ties involved in the last audited consolidated financial statements exceeds EGP200 million (approximately USD4 million). For the purpose of applying the worldwide noti - fication thresholds set out in Article 19 bis (b) of the Egyptian Competition Law, the annual turno - ver of the target in Egypt must exceed EGP200 million for the last year according to the last audited consolidated financial statements. The Egyptian Competition Law and its Execu - tive Regulations do not specify any exceptional rules for specific sectors regarding the notifica -
tion requirements for Financial Thresholds and their calculation methods. 2.6 Calculations of Jurisdictional Thresholds Under Article 53 of the Executive Regulations, the annual turnover or the value of assets is calculated by identifying the generated annual turnover or value of assets for the last year in the last audited consolidated financial statements for each of the persons involved, excluding the sellers, conditional upon their exit from the tar - get after the implementation of the “economic concentration”. Where the seller(s) remain among the related parties of the target after the implementation of the transaction, the seller(s) annual turnover and that of its related parties will be included in the annual turnover of the persons concerned with the “economic concentration”. If the generated annual turnover or value of assets in the last year are in a foreign curren - cy, they are converted into Egyptian pounds according to the average official exchange rate for the purchase and sale of foreign currencies announced by the CBE on the last day of the financial year for the persons concerned with the “economic concentration”. 2.7 Businesses/Corporate Entities Relevant for the Calculation of Jurisdictional Thresholds See 2.6 Calculations of Jurisdictional Thresh- olds . Under Article 55 of the Executive Regulations, the obligation to notify falls on the following per - sons (depending on the case).
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