In another M&A transaction feather in its cap, GLA & Co led a group owned by members of the Al Kharafi merchant family in acquiring Investcorp’s 35% stake in Automak Automotive Company, a vehicle leasing and rental company in Kuwait.

Founded in 2002 by Al Kharafi Projects Co. and Ghazi Omar, Automak is one of the few major players in the vehicles rental and fleet leasing business with a sizeable market share in Kuwait. Automak operates a fleet in excess of 5,000 vehicles. Its premier clients include national oil companies, public ministries and multinational corporations.

The vehicle rental and leasing sector is a growing industry in the GCC region as companies seek to de-lever their balance sheets and favour renting fleets of vehicles versus ownership. In Kuwait, the sector is expected to sustain its strong growth, supported by favourable demographics, further expansion of the oil sector and increased government expenditure. This trend is expected to continue across the GCC and the wider MENA region.

In addition to leading on the buyer’s side with respect to the transaction, GLA & Co led on securing Merger Control clearance from the Kuwait Competition Protection Agency. The team members have been active on most large M&A deals in Kuwait in working with the CPA to secure clearance.

This transaction was led by Alex Saleh, Managing Partner, and Ahmad Saleh, Senior Associate.  The merger control application and approval process was led by Ahmad Saleh, Asad Ahmad, Fahad Albaijan and Yossry Ibrahim.  Other team members on the deal included Youssry Ibrahim and Khaled Alkhashab.

The economic concentration application was submitted just under three months before obtaining official approval from the agency. The parties recently completed the execution of the transaction at the Boursa (the Kuwait stock exchange).

The Kuwait office at GLA & Company enjoys substantial experience and success with the Competition Protection Agency in Kuwait and expects further development of the regulations.

GLA & Company is a full-service, regional law firm in the GCC providing strategic, cost-effective, and forward-thinking legal representation for companies seeking to do business in the Middle East.  With extensive experience advising clients in the key GCC states of Kuwait, Saudi Arabia, and UAE – as well as Egypt and Lebanon – the firm offers unique insights for companies seeking quality legal services. 

The firm has been actively engaged on the topic of merger control, from holding various webinars to publishing many articles, including contributing to the Chambers and Partners Global Practice Guide on Merger Control for Kuwait, Qatar, Saudi Arabia, and the UAE.