The extension of the arbitration clause in corporate groupings is one of the much debated and contemporary issues in the legal community. Some scholars accepted such extension by expanding the interpretation of the relative effects of the arbitration agreement. Some others rejected such extension. This study intends to clarify the concept of corporate groupings and the concept of the extension of arbitration clauses. The study also aims at discussing the legal foundations of accepting or rejecting the extension of the arbitration clause in corporate groupings by analyzing courts judgments and arbitration decisions belonging to various legal systems. One of the conclusions resulting from our research resides in that the concept of corporate groupings is a unified economic reality and it does not entail a commercial company with a legal personality. Furthermore, the study shows how extension is different from the transmission of arbitration clause. Moreover, our analysis resulted in showing that the rejection of the extension of the arbitration clause in corporate groupings leads to the ramification of the dispute between the judiciary and arbitration. The study concludes by several recommendations, the most important one is the necessity of recognizing and consecrating the extension of the arbitration clause in corporate groupings.