Laws governing mergers and acquisitions in UAE
“Mergers generate substantial synergies”- Roger Altman. A merger happens when two companies get together to form a new company, and acquisition happens when acquiring company takes over the majority stake in the acquired company & continues with its prior existence. Mergers and acquisitions can help you realize economies of scale, reduce the cost of production, increase market share, reduce competition, multiply financial resources, access new markets, and ensure sustainability. UAE laws have provisions regarding the procedure of merger and acquisition which our top lawyers in Dubai suggest keeping in mind. The laws are as follows: 1. For public joint stock companies: Regulatory Framework: Decision of the Chairman of the Securities and Commodities Authority (SCA) Board of Directors No. 18/R.M of 2017 and Rules for technical requirements: Decision No. 62/R.T of 2017. For initial approval, the board of directors of the merging companies must issue a resolution