El Salvador merger control (2019)
Produced in partnership with Consortium Legal
El Salvador merger control (2019)

The following Competition guidance note Produced in partnership with Consortium Legal provides comprehensive and up to date legal information covering:

  • El Salvador merger control (2019)
  • 1. Have there been any recent developments regarding the Salvadoran merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in El Salvador?
  • 2. Under Salvadoran merger control law, is the control test the same as the EU concept of ‘decisive influence’? If not, how does it differ and what is the position in relation to 'minority shareholdings'?
  • 3. Are joint ventures caught by the national merger control provisions (including non-structural, cooperative joint ventures)?
  • 4. What are the merger control thresholds and would a purely foreign-to-foreign transaction be caught (commenting on any ‘effects’ doctrine/policy if relevant)?
  • 5. Are there any specific issues parties should be aware of when compiling and calculating the relevant turnover for applying the jurisdictional thresholds?
  • 6. Where the jurisdictional thresholds are met, is notification mandatory and must closing be suspended pending clearance?
  • 7. Is there any discretion to review transactions that fall below the notification thresholds?
  • 8. Is it possible to close the deal globally prior to local clearance?
  • 9. Is there a deadline for filing a notifiable transaction and what is the timetable thereafter for review by the Superintendency of Competition?
  • more

A conversation with Diego Martín-Menjívar, partner at Salvadoran law firm Consortium Legal, on key issues on merger control in El Salvador.

NOTE–to see whether notification thresholds in El Salvador and throughout the world are met, see Where to Notify.

1. Have there been any recent developments regarding the Salvadoran merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in El Salvador?

On 1 January 2018, a new Contentious Administrative Jurisdiction Law came into force, which sees the the creation of new courts for contentious administrative procedures. To make the current Competition Law compatible with this new Contentious Administrative Jurisdiction Law, the Legislative Assembly approved an amendment to Art. 13 of the Competition Law, in which it has amended the procedure that the Superintendence of Competition must follow when carrying out searches during investigation processes; with the previous regulations, the Superintendent of Competition had to present the corresponding request to the judge of first instance with civil or mercantile jurisdiction, the reform grants said jurisdiction to the Contentious Administrative Courts.

Since 2016, the Superintendence of Competition has been requesting the Legislative Assembly amend the current merger control rules. This amendment bill has been under analysis by Congress during the last years, without any progress. In particular, the Superintendence has requested the