Dubai International Financial Centre (DIFC) has just announced its first successful cross-border merger under the DIFC’s Companies Law.
The DIFC Companies Law allows mergers between both private and public companies established in the DIFC and companies established in jurisdictions outside of the DIFC. This is a huge step forward that allows the DIFC to attract world-class business who are looking for a secure base and a user friendly legal and regulatory framework which is supportive of businesses who wish to operate throughout the Region.
The complex merger between United Arab Chemical Carriers Limited with United Overseas Group Limited was undertaken using a ‘reverse triangular merger’ structure which only became possible with the updated DIFC Companies Law of 2018. The newly merged group will be known as United Arab Chemical Carriers Limited.
The success of this merger shows the world that the revised DIFC merger provisions (under the DIFC Companies Law 2018) are not only workable but will enhance the ability of any company wishing to grow within the DIFC and across the whole region. The successful merger additionally showcases the benefits of the legal and regulatory framework provided within the DIFC. It is notable that the DIFC Company Regulators are focused on promoting and supporting business with a smooth and relatively quick approval processes.
Al Suwaidi & Company are well placed to advise companies on mergers and acquisitions throughout the United Arab Emirates.
This News Alert was authored by Robert Sliwinski, of Counsel at Al Suwaidi & Company. Robert is a Barrister, Chartered Arbitrator, Accredited Adjudicator and Mediator, Quantity Surveyor and Dispute Board Member. He is licensed to represent client interests before the DIFC courts.
If you have any questions about this or any other legal enquiry, please do not hesitate to get in touch with Robert on email@example.com