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Under what circumstances is a transaction caught by the legislation?
The Control of Concentrations between Undertakings Law applies to transactions that result in a permanent change of control and meet the applicable thresholds, including:
- mergers of two previously independent undertakings or parts thereof; and
- direct or indirect acquisitions by one or more persons already controlling at least one undertaking (or by one or more undertakings) over one or more other undertakings, whether by purchasing securities or assets, agreements or otherwise.
Joint ventures performing all functions of an autonomous economic entity in a permanent manner also fall under the law.
Do thresholds apply to determine when a transaction is caught by the legislation?
Only concentrations of major importance must be notified to the Commission for the Protection of Competition. For the purposes of the law, a concentration of undertakings is deemed to be of major importance and thus meet the jurisdictional thresholds if:
- the aggregate turnover achieved by at least two of the undertakings (in relation to each undertaking) concerned exceeds €3.5 million;
- at least two of the undertakings concerned achieve a turnover in Cyprus; and
- at least €3.5 million of the aggregate turnover of all undertakings concerned is achieved in Cyprus.
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