Egypt Redrafts Companies Law to Reduce Merger Valuation Reviews from 60 to 30 Days

Egypt is moving toward a major legislative review of its Companies Law, aiming, among other things, to accelerate valuation procedures in M&A deals by reducing the timeframe required for valuation reviews from 60 days to just 30 days—a move that could significantly impact market efficiency and deal attractiveness.

This proposed amendment shifts the valuation oversight model from one based on bureaucratic formal approval to a professional accreditation model. Responsibility for valuations will be transferred to experts licensed by the Financial Regulatory Authority (FRA), mirroring practices adopted in more mature emerging markets across the Gulf region and East Asia.

This move aligns with the Egyptian government's efforts to improve the business climate and attract more foreign direct investment, particularly amid growing competition with Gulf markets that offer faster and more flexible procedures for executing strategic deals.

Sources indicate that the proposed reforms remain in the legislative review stage and have not yet been officially approved; however, this legislative direction is clearly reflected in discussions among the business community and investors seeking to streamline entry and exit pathways in the Egyptian market.

What do these terms mean?

Mergers & Acquisitions (M&A): Operations involving the combination of two companies or the acquisition of one by a larger entity, requiring a precise valuation of assets and liabilities to determine a fair deal price.

Financial Regulatory Authority (FRA): The Egyptian regulatory body responsible for overseeing capital markets, insurance, and non-banking finance, serving as the authority licensing financial evaluators who will assume these duties under the proposed reforms.