In Egypt, the merger of companies is regulated by the Commercial Companies Law
In Egypt, the merger of companies is regulated by the Commercial Companies Law No. 159 of 1981 and its amendments. A merger is defined as the combination of two or more companies into a single entity, with one of the companies surviving and the other(s) being dissolved.
Under Egyptian law, mergers can take different forms, including:
1. Merger by acquisition: where one company acquires all assets and liabilities of another company, which is then dissolved.
2. Merger by consolidation: where two or more companies combine to form a new entity, which then assumes all assets and liabilities of the merged companies.
3. Merger by absorption: where a company absorbs another company, which is then dissolved.
The process of merger in Egypt involves several steps, including:
1. Preparing a merger plan that outlines the terms and conditions of the merger, including the share exchange ratio, the valuation of assets and liabilities, and the treatment of employees and shareholders.
2. Obtaining approval for the merger plan from the board of directors and shareholders of each of the merging companies.
3. Obtaining approval for the merger plan from the relevant regulatory authorities, including the Egyptian Financial Supervisory Authority (EFSA) and the Competition Authority.
4. Registering the merger with the Commercial Register and publishing a notice of the merger in the Official Gazette.
5. Transferring the assets and liabilities of the merged companies to the surviving company, and dissolving the other company(ies).
Overall, the merger of companies in Egypt is a complex legal process that requires careful planning and compliance with the relevant legal and regulatory requirements. By following the proper procedures and obtaining the necessary approvals, companies in Egypt can successfully merge with other companies to achieve their business objectives and enhance their competitiveness in the market.