GAC green lights acquisition of Oud Elite by Arabian Company for Oud

Logo of General Authority for Competition (GAC)

The General Authority for Competition (GAC) approved the acquisition of Oud Elite by Arabian Company for Oud and Eastern Perfume.

GAC said in a statement today, Sep. 19, that it studied the commodity dimension of the deal in the eastern perfumes and oud market.

The authority described the deal as regional, due to the extensive reach of social networks and the growing tendency for online retail trade and construction of showrooms in the region. Therefore, GAC conducted a study on the region’s the eastern perfumes and oud market to determine concerns.

The authority concluded that there are no expected concerns about competition in the Kingdom, given the high-growth nature of the perfumes market, in addition to the growing demand for these products. Moreover, the less barriers to entry into the retail market will increase competitive pressure in the market.

Dealings between the deal parties are limited to some kinds of oud and aromatic oils. As both companies show no vertical integration with competitors (as they do not provide third-party manufacturing or distribution), the deal will not have a negative impact on the supply chains of market participants.

On the other hand, conventional and online stores, which produce eastern perfumes, provide similar products. Accordingly, there are no restrictions on displacement in the sector.

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