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Sunday, 14 July 2019

ECA extends technical examination period of Uber-Careem merger

ECA gives itself more time to rule in Uber-Careem merger: The Egyptian Competition Authority (ECA) has extended the period during which it is studying Uber’s recent USD 3.1 bn acquisition of Careem by an additional 60 days, according to an ECA statement. The watchdog originally said it would take 60 working days to examine the economic impact of the merger when the agreement was first announced at the end of March. However, it says it now needs additional time to continue its investigation and study the responses of other companies. Both companies have been notified of the extension, the ECA said, adding that they have committed to operating separately until a decision is reached.

Background: The merger has been met with different responses in the Middle East. Emirati Economy Minister Sultan bin Saeed Al Mansouri last month gave “unconditional approval” to the acquisition. Meanwhile, the ECA said that the agreement could “lead to a significant impediment on effective competition in the markets” and has threatened each company with a fine of up to EGP 500 mn.

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