المدونة

The first paragraph of Article 225 of the new Saudi Companies Law and Article 49 of the Merger and Acquisition Regulations issued by the Capital Market Authority in Saudi Arabia stated that, without prejudice to the provisions of the Law, the Companies Law and their implementing regulations, any company may enter into a merger transaction through any From the following:

Recently, we are witnessing companies resorting to expansion through organizational restructuring processes, which may be by transforming the company into another type of company, or by merging with another company, or by division or acquisition, with the aim of achieving growth, and acquisition is one of the most important methods of organizational restructuring For companies, where the company may work to increase its assets and activities that positively affect its value, and it also evaluates its shares and stakes in the financial market if they are listed in it.

Acquisition of companies in general is a transaction that includes the sale and purchase of shares of a company whose shares are listed in the market by submitting an offer or a private sale and purchase transaction. As for the reverse acquisition, it means that the listed company offers new shares to the shareholders of an unlisted company instead of their shares, so that these new shares represent More than 50% of the shares of the listed company with voting rights after the acquisition

Companies, regardless of their size or the nature of their activities, often encounter a range of existing or potential challenges that may hinder their ability to achieve their goals, especially amidst intense global competition. To overcome these obstacles, many turn to merger and acquisition strategies to create a new economic entity that is more advanced on administrative, technical, and financial levels.

It is a legal act that comes as a result of control, and that control is achieved in one of two ways, either through the purchase of a number of shares, or through an agreement to form a majority controlling the company. Indirect, such as acquiring a company that owns more than half of the capital or voting rights in other companies listed in the financial market on a part of the company’s capital in Saudi Arabia, so that it gives control over the voting majority in the company, or he alone controls the majority of voting rights in company

The concept of corporate transformation in the new corporate system is changing the system that governs the company, whether it is accompanied by changing its form or not. A new legal capacity, and the company retains its rights and is responsible for its pre-transformation obligations