Competition Law

Client:
Al Noor Retail Group – National Retail Chain Operating Across UAE and Oman

Legal Area:
Competition Law / Mergers & Acquisitions / Regulatory Compliance

Background:
Al Noor Retail Group planned to acquire a competing chain of supermarkets operating in Dubai and Sharjah. While the acquisition was part of their strategic expansion, the deal raised potential red flags under the UAE Competition Law (Federal Law No. 4 of 2012), due to the combined market share potentially exceeding regulatory thresholds.

The client approached Ahcene Law Firm for legal oversight and to ensure that the transaction would not be deemed anti-competitive or subject to fines or reversal post-acquisition.

Legal Issues Identified:

• Potential violation of merger control thresholds (dominant market position).
• Risk of post-merger pricing power in two emirates.
• Need for prior approval from the Ministry of Economy’s Competition Department.
• Risk of investigation from the Consumer Protection Department if competitors raised complaints.

Ahcene Law Firm’s Approach:

1. Market Analysis & Risk Assessment:
   Our legal team conducted a detailed market dominance assessment, working with economic analysts to define the client’s market share post-merger. This included geographic scope, consumer base overlap, and pricing data.

2. Regulatory Notification & Approval Strategy:
   We drafted and submitted a formal pre-merger notification to the Ministry of Economy, outlining the nature of the deal and arguing that the merger did not reduce competition or create a dominant position under Article 6 of the law.

3. Mitigation Measures & Legal Structuring:
   To avoid regulatory challenges, we proposed structural remedies, including:

   • Divestiture of two overlapping retail outlets
   • Separate branding for specific regions to maintain competitive appearance
   • A voluntary price monitoring agreement submitted to the ministry.

Outcome:

• The Ministry of Economy approved the merger with no objections.
• The transaction was completed within 90 days, and the client avoided penalties or public scrutiny.
• Al Noor Retail Group expanded its market presence while staying full