Kuwait sets new merger notification thresholds

Article One of the decision, as published in the official gazette – ‘Kuwait Al-Youm’-- mandates all parties involved in an economic concentration to submit an approval request to the authority using the specified form, provided that one of the following overall or individual criteria is met:

1. One of the parties involved in the concentration achieves annual sales within the State of Kuwait exceeding KD1.5 million, according to the audited financial statements for the previous fiscal year.

2. The combined annual sales of all parties involved in the concentration within Kuwait exceed KD3 million, according to the audited financial statements for the fiscal year preceding the completion of the concentration, provided that the company or activity targeted for acquisition achieves sales within Kuwait of not less than KD 1.5 million.

3. The value of the registered assets of the parties involved in the concentration within the State of Kuwait exceeds KD7.5 million, based on the audited asset statements for the previous fiscal year.

Article Two defines ‘sales within the State of Kuwait’ as sales realized in the Kuwaiti market, whether achieved directly or through branches, subsidiaries or companies under its control.

Article Three states that if any party breaches the obligations stipulated in this decision, the authority may take the measures stated in Law No. 72/2020 and its executive regulations.

Article Four repeals the Board of Directors' Decision No. Q-A-S/2021/26 issued on Sept 23, 2021 regarding the controls on aggregate and individual limits.