Ethiopia merger control

The following Competition practice note provides comprehensive and up to date legal information covering:

  • Ethiopia merger control
  • 1. Have there been any recent developments regarding the Ethiopian merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Ethiopia?
  • 2. Under Ethiopian 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 Ethiopia Trade Competition and Consumer Protection Authority?
  • More...

Ethiopia merger control

A conversation with Atkilit Bekele, associate at Ethiopian law firm Mesfin Tafesse & Associates, on key issues on merger control in Ethiopia.

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

Ethiopia is also a member of COMESA, which operates a supra-national merger control regime.

Note–temporary changes to deadlines due to coronavirus pandemic–see MJ merger control–competition authorities and coronavirus (COVID-19) status

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

The Ethiopia Trade Competition and Consumer Protection Authority issued a Directive on April 2015 in regards to a pre-merger notification threshold–see question 4 below for details.

There have been no developments to note since.

2. Under Ethiopian 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'?

The Ethiopian Trade Competition and Consumer Protection Proclamation No.813/2014 (the Merger Control Law) does not use any control test. Every transaction that is defined as merger and fulfils the threshold requirement will be eligible for notification without any control test.

3. Are joint ventures caught by the national merger control provisions (including non-structural, cooperative joint ventures)?

Yes. Under Article 9(3)

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