UAE issues new rules on mergers, acquisitions of joint stock firms

A new decision concerning the regulations of mergers and acquisitions of UAE-based joint stock companies has been issued by Sultan bin Saeed Al Mansouri, Minister of Economy, and Board Chairman of the Securities and Commodities Authority, SCA.

The decision, which will be effective as of the day following its publishing with the Official Gazette, includes three chapters comprising 61 articles dedicated to acquisition general rules and conditions, different definitions of mergers and takeovers, surveillance procedures, and control, inspection and penalties.

As part of its mission to ensure a well-developed investment-conducive and resilient financial system, SCA has issued over the recent period a number of decisions and launched new systems, and modified others to ensure more market resilience, optimize performance and upgrade services in line with its endeavours to develop its organisational infrastructure, legislative environment and surveillance system as well as its institutional support services, which have helped capital markets ensure more resilience and agility to enhance services and boost competitiveness.

Source: Khaleej Times