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October 2, 2025Majallah al-dawlīyah lil-buḥūth wa-al-dirāsāt al-qānūnīyah =0 citations

The Effects of Acquisitions on Companies Participating in the Acquisition Process: A Comparative Study of UAE and Egyptian Legislation

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AAAlieh AmeriANAbdullah Al nuaimiMBMustafa Al Balushi

Key Points

  • The acquisition enables the acquiring company to control the target company, expand its business, and achieve greater financial efficiency.
  • Despite the acquisition, the target company maintains its legal personality, ensuring stability in transactions and retaining financial independence.
  • Legal frameworks in UAE and Egypt aim to maintain fairness in the acquisition process while balancing the needs of both acquiring and target companies.
  • Recommendations include establishing stringent legal controls to protect the independence of target companies and ensure financial transparency.

Abstract

The research addresses the implications for the parties involved in a business acquisition (the acquiring company and the target or acquired company), through an analysis of the legal aspects of this process. On the one hand, the impact of the acquisition on the legal structure of the acquiring company and the challenges associated with the new management of the target entity are explained in the first section: "The Effects of the Acquisition on the Acquiring Company." On the other hand, the repercussions of the acquisition on the target or acquired company are discussed in the second section: "The Effects of the Acquisition on the Acquired Company." The legal and regulatory frameworks governing these effects are also highlighted, in accordance with relevant UAE and Egyptian legislation, to ensure a balanced and fair acquisition process between the two parties. The study reached several conclusions, the most important of which is that the acquisition process enables the acquiring company to impose control over the target company, expand its business scope, and diversify its investments, with the potential to achieve greater financial efficiency. Furthermore, the acquired company retains its legal personality after the acquisition, ensuring the stability of commercial transactions and granting it financial independence and the ability to litigate, despite the possibility of amending its articles of association and bylaws and restructuring its management. The study reached several recommendations, the most important of which are establishing strict legal controls to ensure a balance between the interests of the acquiring company and the target company, protecting the latter's independence and preventing the exploitation of its resources in a manner that harms its long-term interests. It also strengthens the financial and administrative disclosure requirements of target companies to ensure greater transparency in business operations before and after the acquisition.

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Cite This Study

Ameri et al. (2025) studied this question.

synapsesocial.com/papers/68de79715b556a9128e1b08ahttps://doi.org/10.59992/ijlrs.2025.v4n9p12
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