The main obstacles are the preparation of the operation and the offer, the completion of the operation and, if necessary, obtaining the agreement of the competent supervisory authorities. The preparation of the transaction and the offer usually involves the execution of the confidentiality and exclusivity agreement between the potential buyer and the objective (see section 6 below). In addition, the buyer will usually carry out transactions including The vast majority of online businesses – that is, companies registered in the United Arab Emirates outside the free zones – are governed by the UAE Business Companies Act (Federal Law 2/2015). Part 7 of the Act sets out the rules for the conversion, merger and acquisition of businesses. Listed companies must also comply with the Corporate Governance Code and other circulars and regulations of the Securities and Commodities Authority. The UAE clearly has a concentration regime under the CDC. However, this diet has not been aggressively tested in practice. The largest merger observed in the United Arab Emirates in recent years was not based on the CCL merger rules, but on a specific procedure. The absence of Vailian mergers can be attributed to many factors, such as.
B the different dynamics of the UAE economy, the absence of market incidents and the newly established UAE capital markets, which are developing markets. It would therefore be impractical to apply complex fusion models used in markets such as Great Britain and the United States. The market standard is that a virtual data space is prepared by the seller, verifying legal, financial and business documents through an online portal. This is more efficient than using a physical data space, both in terms of cost and time. However, the authors find that physical data spaces and own team agreements are still used in negotiated transactions between competitors, but physical data spaces can increasingly be replaced by own team sections of virtual data premises. Abu Dhabi Financial Group`s merger with Shuaa Capital, in August 2019, into a combined company with $12.8 billion in assets under management. The seller will usually draft the confidentiality agreement, the trial letter, the information memorandum and the exclusivity agreement, and the buyer will draft the letter of offer. Each party may design the activity contract, the letter of publication and the ancillary agreements. However, there is no doubt that there are companies for which mergers can improve the overall quality and diversity of the underlying assets; and enhance the value of both parties to the merger. A three-way merger between Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank in May 2019 for an amount of $115 billion. In the United Arab Emirates, major mergers and investments continue to be encouraged by state-owned or controlled enterprises, in particular the banking and financial sectors. What is remarkable is that the high-profile three-way merger between Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank was completed in the second quarter of 2019.
The merged entity has an asset base of more than 420 billion dirhams and is the third largest lender in the United Arab Emirates. The merger is part of a consolidation trend in the banking sector and represents the wish of the UAE authorities to see consolidation in sectors where profitable synergies can be achieved. Similarly, media reports indicate that Dubai Islamic Bank and noor Bank are currently in merger talks. Discussions are ongoing and it is not yet certain that an agreement will be reached. Local considerations require a thorough assessment before using different methods in their legal environment in other legal systems. A stark difference between foreign and GCC regimes is the difference between the Civil Code and common law systems. The underlying agreements are the main source of law that governs the relationship between the parties under common law systems, while the Civil Code offers significant gaps in common legal relationships. In this article, we look at a key form of transaction that offers growth and liquidity options.. . .